BUPA Ireland has introduced anew way of looking at health insurance needs. We provide insurance for all medical treatments rather than cover for discretionary convenience and comforts while in hospital. We believe everybody should have whatever hospital treatment they require, irrespective of where that treatment is available.
We strongly believe this health insurance should be community rated that is, that the same price is charged regardless of age or health status or, in our view, income. Our health insurance product health care is offered at the same lowest price to people of all ages.
It complies fully with the spirit as well as the letter of community rating legislation. We of course believe it is vital to attract as many young people as possible to health insurance to ensure a healthy system for the elderly and the young - a challenge for all insurers. This is why we insure students up to 21 years at a children's rate.
Anyone of any age insured with our competitor can avail of our health insurance plan at the same price which includes:
. a wide choice of advanced hospital facilities with no top up bills;
. full cover in the Mater private and Blackrock clinic for heart surgeries available in those hospitals;
. psychiatric treatment in private hospitals;
. the most extensive treatment for cancers including in patient, daycare and out patient care;
. cover in the UK when treatment is not available in Ireland;
. major out patient benefits including cancer screening for women and alternative medicines.
Patients want to be sure they are fully covered and if they are not they want to be sure of the shortfall so they can provide for top up bills. Our professional arrangements with hospitals and doctors reflect our approach and will lead to greater certainty for patients and efficiency in health care delivery.
Our essential health insurance scheme satisfies the demand for access to the widest range of health treatment at the lowest cost. We believe a clerk on £7,500 should have the same treatment as a person of independent means and that luxury should not be subsidised by those on lower incomes.
We believe our approach reduces a seven tier health (including five levels of health insurance) service to three tiers: medical card holders, the general public system and the medically insured.
Far from forcing the elderly out of private health care our affordable product already brings older people out of the public system for the first time.
There is also a demand for insurance to cover costs which arise while in hospital, e.g. transport, baby minding, lost income and, if the customer chooses, to pay for extra luxury while in hospital.
This demand for extra convenience we meet by offering cash plans. No extra health care is provided by cash plans and they are separate policies from the core health insurance products. Benefits are paid whether a member receives public or private care and the benefit can be bought in units of £30, £60, £90, or £150 per day.
Patients needed the facility to finance shortfalls in hospitals before BUPA Ireland arrived and particularly as no available insurance plan provided full cover in most private hospitals.
Recent reports indicate that the percentage shortfall will increase. This need, as evidenced by a recent article by the Department of Health's actuaries, was met by cashplans.
We knew we were entering a market where the regulator is also the sponsoring minister of our competitor. We took extensive legal advice to ensure our products met market demand and that they complied fully with EU and Irish legal requirements.
BUPA sells health insurance in over 100 countries. It is a not for profit organisation and exists for its members' benefit. We act in a responsible and legal manner in every market we enter.
We can offer health insurance in Ireland because the EU opened up the market Our national legislation accommodates the existence of cashplans. Any suggestion that we combed the legislation for loop holes is completely untrue.
We are in the market to innovate and compete. About 10 per cent of our quotes have gone to people with no previous health insurance and we already have many members who have paid their subscriptions.
Competition and our approach to innovation, cost containment and value for money will keep health insurance affordable and our arrangements with providers will give confidence and certainty to consumers. They will also help promote good cost containment and efficiency.
By increasing the market size we will reduce the burden on the State and provide greater resources for private and public hospitals.
The suggestion that BUPA Ireland should be prevented from selling its cash plans and not any other cash plan provider is, I believe, completely against the consumers interest. All monopolies have to adjust to competition and recent press articles suggest that any problem which our competitor has existed before the arrival of BUPA Ireland.
The Director of Consumer Affairs has said: "VHI's response should be to compete with BUPA and not to complain."
I believe that we have the most comprehensive, economic and fairest health insurance on the market. It is available to Dr Fitzgerald and other insured people of much more advanced years.
Let's have competition!