Sinn Féin health spokesman Caoimhghín Ó Caoláin said he objected to private health insurance in principle.

“At its core, it is immoral that people can buy access to healthcare on the basis of the strength of their income stream or net wealth, while others languish in long waiting queues, many of them in agony and some with their lives in suspension, waiting for the opportunity to even have a first consultation, never mind access to a treatment programme,’’ he added.

Mr Ó Caoláin told the Dáil he hoped Minister for Health Leo Varadkar would accept the need for a health system paid for by progressive taxation that would be available to all on the basis of need. "It is an ambitious goal, but one that can be achieved,'' he added.

He was speaking during a debate on the final stages of the Health Insurance (Amendment) Bill, providing for a range of measures, including risk-equalisation credits.

Mr Ó Caoláin said it was very important the Government recognised it was wrong to perpetuate a two-tier system.

Mr Varadkar said the health budget was always finite, even in the wealthiest and most socialist country.

"A finite budget requires rationing and queues,'' he added. "People have to wait because someone else's case is more urgent.''

The Minister said there would always be some sort of private health insurance system, unless people were banned from spending their own money on their health.

Fine Gael TD Dan Neville said health insurance companies appeared to be discriminating in the case of mental health inpatient services.

“For example, the VHI covers 180 days for general health issues and hospitalisation, while its psychiatric policies vary from 100 to 180 days, depending on the plan,’’ he added.

He added other companies were similar in having no time limit on physical health cover but less coverage for mental health inpatient services.