It is time to “cut the apron strings” and let the VHI stand on its own two feet, Independent Senator Feargal Quinn said as he introduced legislation to reform

health insurance.

Mr Quinn said legislators “can no longer tolerate a situation where, time and again, the welfare of VHI outflanks the welfare of the consumer”.

He said special treatment for one health insurance provider over all others and conflicts of interest at the highest levels are not features of a fair and equitable health insurance sector. “Quite frankly, under the current arrangements, the consumer comes a definitive last.”

Minister for Health James Reilly rejected the Health Insurance (Reform) Bill, and also denied there was preferential treatment for the VHI.

Competitive

Dr Reilly said he was taking steps to support the private health insurance market, and he considered those rather than the proposals in the Senator’s Bill to be the “most appropriate to promote a sustainable and competitive private health insurance market”.

The Bill transfers management of the State’s ownership of the VHI from the Minister for Health to the Minister for Public Expenditure to end any “actual or perceived conflict of interest” because the Minister has to wear a number of hats.

Dr Reilly said transferring responsibility for the VHI to any other Minister would not be appropriate.

The Bill also requires the VHI to meet the same solvency requirements applicable to other health insurers.