An ageing population means that as more people live longer, their greater medical needs place increasing pressure on the health service. For an increasing number, however, private health insurance has become less affordable as health premiums have risen rapidly to meet the higher cost of health care and the increased volume of insurance claims.
VHI, the largest health insurer, has warned that within a decade the current private health insurance model may be unsustainable. It estimates that by 2025, the cost of claims could rise by four fifths to €3.4 billion, driven higher by this ageing demographic. And by then it anticipates a 60 per cent rise in the number of people over the age of 65.
Higher health insurance costs and the impact of recession have prompted many subscribers to reduce their cover since 2008 while the number with private health insurance has declined steadily, greatly adding to pressure on the public health service.
In its submission to an Oireachtas committee that is examining the future of the health service, VHI has questioned whether the health insurance market can withstand such additional costs.
Major reform of the health service is long overdue. The promise of universal health insurance was never realised. Now the implementation of far reaching changes in the health services will require politicians to take a long term view and to resist the temptation to use the health issue for short-term party advantage.
Whether the committee can rise to that challenge, and establish a broad political consensus on the necessary reforms will present them with a major test.
VHI’s view is that the public and private health systems need to change their model of delivering health care. It suggests a switch of emphasis; away from the current “hospital centric” model that is over reliant on acute hospitals for medical treatments, and towards an approach that cares for patients in a “primary/community care setting”.
The State needs a health service that is fit for the ageing and the aged, and one also that it can afford. The demographic clock is ticking.