Vhi Healthcare
Encyclopedia
The Voluntary Health Insurance Board (An Bord Árachais Sláinte Shaorálaigh in Irish
) — which trades under the brand name Vhi Healthcare, and is still commonly referred to in Ireland as "The VHI" - is the largest health insurance
company in the Republic of Ireland
. It is a statutory corporation whose members are appointed by the Minister for Health and Children
. It is regulated by the Health Insurance Authority
.
and travel
insurance. Vhi Healthcare claims to have 1.55 million members which represents 40% of the population or 80% of the private health insurance market
while the Health Insurance Authority's 2003 report into the health insurance market in the Republic of Ireland states that Vhi had 70 percent of the market. Until 14 December 2006, its main rival in the market was BUPA Ireland but since BUPA's withdrawal, Irish based Quinn Healthcare and Aviva
(formerly Hiberian) have emerged as Vhi's main competition. The current Vhi Healthcare business model is based on directly paying the consultant
and hospital
bills of its members and does not provide medical services directly, however in February of 2010 Vhi launched Vhi HomeCare a joint venture providing Hospital in the Home type services, it also provides minor injuries treatment centres through another joint venture partnership, Vhi Swiftcare.
. This law has been amended but remains the primary legislation under which Vhi Healthcare operates.
The company held a monopoly in the health insurance market in Ireland until 1996, when BUPA
entered the market. The company re-branded from "VHI - Voluntary Health Insurance" to "Vhi Healthcare" in the early 2000s, although the Board's legal name has never been altered.
The company has caused controversy recently by its demand that risk equalisation
be introduced in the health insurance market in Ireland. This would mean that Quinn-healthcare
(formerly the business of BUPA Ireland) and eventually Vivas Health would be forced to subsidise Vhi Healthcare in its activities, as Vhi's customer base is older that that of its competitors. On 13 December 2006, BUPA announced it is to leave the Irish market, due to risk equalisation being introduced.
It is expected that the "statutory corporation" status of Vhi Healthcare will soon be changed in order to prepare it for more vigorous competition as it is often accused of being a virtual monopoly on private healthcare. While the privatisation of the company is not believed to be imminent, it was reported in the company's 2004 Annual Report that the Minister for Health would change the status of the board into a limited company
owned by the state. The Voluntary Health Insurance (Amendment) Act 2008 , allows the Board to transfer its health insurance functions to a wholly owned subsidiary which will be a private company limited by shares
. However, it does not dissolve the Board itself, which will become a holding company
. It also requires the health insurance company to achieve the revel of reserves that any other authorised insurer is required to have, something it was previously exempt from.
in health insurance
.
This decision has, ostensibly, been overturned by the formation of a new coalition government after the Irish General Election 2011. In the coalition's Programme for Government , the Coalition commits itself to retaining VHI Healthcare as a state-owned corporation, serving as a public option within a Universal Health insurance system, modeled on the Dutch healthcare system.
VHI - Pittsburgh - Voice Handicap Index - a self rating scale of voice dysfunction
Irish language
Irish , also known as Irish Gaelic, is a Goidelic language of the Indo-European language family, originating in Ireland and historically spoken by the Irish people. Irish is now spoken as a first language by a minority of Irish people, as well as being a second language of a larger proportion of...
) — which trades under the brand name Vhi Healthcare, and is still commonly referred to in Ireland as "The VHI" - is the largest health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
company in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. It is a statutory corporation whose members are appointed by the Minister for Health and Children
Minister for Health and Children (Ireland)
The Minister for Health is the senior minister at the Department of Health in the Government of Ireland and is responsible for health care in the Republic of Ireland and related services.The current Minister for Health is James Reilly, TD...
. It is regulated by the Health Insurance Authority
Health Insurance Authority
The Health Insurance Authority is the regulatory body for private health insurance in Ireland. The Authority's remit is to monitor and research health insurance generally; operate the risk equalisation scheme; advise the Minister on health insurance generally; monitor the operation of other...
.
Products
Vhi Healthcare offers a number of health insurance products, including its five hospital plans (Plans A to E). It has also recently expanded into dentalDental insurance
Dental insurance is a type of health insurance designed to pay a portion of the costs associated with dental care. There are several different types of individual, family, or group dental insurance plans grouped into three primary categories: Indemnity which allows you to see any dentist you want...
and travel
Travel
Travel is the movement of people or objects between relatively distant geographical locations. 'Travel' can also include relatively short stays between successive movements.-Etymology:...
insurance. Vhi Healthcare claims to have 1.55 million members which represents 40% of the population or 80% of the private health insurance market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
while the Health Insurance Authority's 2003 report into the health insurance market in the Republic of Ireland states that Vhi had 70 percent of the market. Until 14 December 2006, its main rival in the market was BUPA Ireland but since BUPA's withdrawal, Irish based Quinn Healthcare and Aviva
Aviva
Aviva plc is a global insurance company headquartered in London, United Kingdom. It is the sixth-largest insurance company in the world measured by net premium income and has 53 million customers in 28 countries...
(formerly Hiberian) have emerged as Vhi's main competition. The current Vhi Healthcare business model is based on directly paying the consultant
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...
and hospital
Hospital
A hospital is a health care institution providing patient treatment by specialized staff and equipment. Hospitals often, but not always, provide for inpatient care or longer-term patient stays....
bills of its members and does not provide medical services directly, however in February of 2010 Vhi launched Vhi HomeCare a joint venture providing Hospital in the Home type services, it also provides minor injuries treatment centres through another joint venture partnership, Vhi Swiftcare.
History
The Voluntary Health Insurance Board was created in 1957 under the Voluntary Health Insurance Act, 1957 by the Minister for Health Tom O'HigginsTom O'Higgins
Thomas Francis O'Higgins was an Irish Fine Gael politician, a barrister and a judge.Tom O'Higgins was born in Cork in 1916. He was the son of Thomas F. O'Higgins and the nephew of Kevin O'Higgins...
. This law has been amended but remains the primary legislation under which Vhi Healthcare operates.
The company held a monopoly in the health insurance market in Ireland until 1996, when BUPA
Bupa
Bupa is a large British healthcare organisation, with bases on three continents and more than ten million customers in over 200 countries. It is a private healthcare company, in direct contrast to the UK's National Health Services, which are tax-funded healthcare systems and do not require private...
entered the market. The company re-branded from "VHI - Voluntary Health Insurance" to "Vhi Healthcare" in the early 2000s, although the Board's legal name has never been altered.
The company has caused controversy recently by its demand that risk equalisation
Risk equalization
Risk equalization is a way of equalizing the risk profiles of insurance members in order to avoid loading premiums on the insured to some predetermined extent.- Health care :...
be introduced in the health insurance market in Ireland. This would mean that Quinn-healthcare
QUINN-healthcare
QUINN-healthcare was formed in February 2007 following a high-profile acquisition of the health insurer Bupa Ireland by the Quinn Group. The newly formed QUINN-healthcare employs over 300 personnel in Little Island, County Cork and has embarked on a significant drive to increase its profile and...
(formerly the business of BUPA Ireland) and eventually Vivas Health would be forced to subsidise Vhi Healthcare in its activities, as Vhi's customer base is older that that of its competitors. On 13 December 2006, BUPA announced it is to leave the Irish market, due to risk equalisation being introduced.
It is expected that the "statutory corporation" status of Vhi Healthcare will soon be changed in order to prepare it for more vigorous competition as it is often accused of being a virtual monopoly on private healthcare. While the privatisation of the company is not believed to be imminent, it was reported in the company's 2004 Annual Report that the Minister for Health would change the status of the board into a limited company
Limited company
A limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be...
owned by the state. The Voluntary Health Insurance (Amendment) Act 2008 , allows the Board to transfer its health insurance functions to a wholly owned subsidiary which will be a private company limited by shares
Private company limited by shares
A private company limited by shares, usually called a private limited company , is a type of company incorporated under the laws of England and Wales, Scotland, that of certain Commonwealth countries and the Republic of Ireland...
. However, it does not dissolve the Board itself, which will become a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
. It also requires the health insurance company to achieve the revel of reserves that any other authorised insurer is required to have, something it was previously exempt from.
Privatisation
The Irish Government announced on 27 May 2010 that the company is to be privatised within the next three years. Spokespeople from the Department of Health and Children stated that they did not expect premiums to increase or the loss of any jobs at the 800 strong company. The state expects to invest large sums of money to allow the company gain a solvency ratio in line with regulations and other insurance companies. This coincides with new health risk equalisation measures which are to be rolled out from 2012. The Irish government are looking toward retaining Ireland's history of community ratingCommunity rating
Community rating is a concept usually associated with health insurance, which requires health insurance providers to offer health insurance policies within a given territory at the same price to all persons without medical underwriting, regardless of their health status.Pure community rating...
in health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
.
This decision has, ostensibly, been overturned by the formation of a new coalition government after the Irish General Election 2011. In the coalition's Programme for Government , the Coalition commits itself to retaining VHI Healthcare as a state-owned corporation, serving as a public option within a Universal Health insurance system, modeled on the Dutch healthcare system.
See also
- Health care in the Republic of IrelandHealth care in the Republic of IrelandThe public health care system of Ireland is governed by the Health Act 2004, which established a new body to be responsible for providing health and personal social services to everyone living in Ireland - the Health Service Executive...
VHI - Pittsburgh - Voice Handicap Index - a self rating scale of voice dysfunction