Irish Medical Device Association John O’Dwyer, Chief Executive 9th April 2014

About Vhi Healthcare Ireland’s leading health insurer with 1.17 million customers and almost 8,000 corporate schemes On-going focus on product Innovation & added value for customers Comprehensive range of plans ,offering tailored benefits including excellent back up services supported by online systems New Innovative services - Vhi SwiftCare Clinics in 2005 , Vhi Homecare in 2010 , Vhi Screening Centres in 2010 Employer-focused services such as EAP and Occupational Health.

€1.3 billion paid out annually on our customers healthcare needs Funding Our Customers’ Healthcare Needs €1.3 billion paid out annually on our customers healthcare needs Industry Pays out €1.9 billion on claims costs. Vhi Healthcare pays out c. €1.35 billion i.e. 70% of all claims in the market Partnership Approach – PHI spends c. €180 million on medical implantable devices Cover provided for new innovative drugs, techniques and therapies which are clinically effective and which are aimed at improving healthcare outcomes for patients. During 2013 these included: Subcutaneous delivery of chemotherapy Vhi Healthcare was the first insurer to offer cover for Cyberknife in 2013 c. €220m on cancer and related care c. €160m on orthopaedic care incl. hip replacements etc. c. €110m on Heart and Circulatory System

Healthcare Reform and Innovation Cost containment initiatives: Total savings of €300 million since 2009 Additional savings of €100 million a year for the next three years will be delivered through: - further rate reductions; utilisation management; clinical audits; clinical reviews; claims management – Special Claims Investigation Unit , public hospital reimbursement system Implement Pat McLoughlin recommendations Reform & innovation: New procurement models and pricing for providers and medical personnel Driving innovative models of care – day care; side room procedures – 80% of procedures now in a day- care setting. Length of stay reductions Key Enablers E-Commerce Analytics People

Key Healthcare Affordability Challenge is Ageing

The Relative Affordability of PMI Ireland UK Netherlands Australia USA Average Premium €1,300 €1,434 €1,680 €1,172 €4,363 Average Salary €35,127 €38,322 €44,412 €37,855 €37,871 Insurance as % of average salary 3.7% 3.8% 3.1% 11.5% Source Insurance Ireland; CSO Laing & Buisson / Pay Scales inc. Dutchnews.nl; Statistics Netherlands Australian Dept of Health; Bureau of Statistics KFF Employer Health Benefits 2013; Dept of Labour

Thank you