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

2. 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.

3. €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

4. 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

5. Key Healthcare Affordability Challenge is Ageing

6. 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

7. Thank you