Free care under new health system

A new report has indicated that a system of free GP care, prescription drugs and hospital care could be introduced without necessarily implementing a major increase in health spending.

This "common basket" of care, the report claims, could be provided at the current level of health spending, and takes into account that care could be delivered in a more organised and efficient way than under the current "dysfunctional" system.

Dr Fergus O'Ferrall of the Adelaide Hospital Society said there would not necessarily have to be a major increase in taxation to fund free GP and hospital care and free prescription drugs.

It is suggested that a mix of taxes on tobacco and alcohol and payroll taxes could be used to ensure everyone would have health cover at no additional cost.

However, if direct taxes were used to fund the new model of care, assuming the relevant efficiencies were made, people would have to pay 3.1% extra in tax to fund the best possible system beyond the common basket of services.

A single person on €25,000 a year would pay an extra €20 a month for free access to GPs, hospitals and drugs. A married couple on a combined income of €70,000 a year woiuld pay €1,314 per annum, it is proposed.

The report says the new system would provide a social-insurance model of healthcare for all providing guaranteed access for everyone to the care they need on an equal footing. There would no longer be the "two-tier" system that currently operates.

Those in employent would contribute to the funding of the new system through taxes while the State would subsidise the care of the less well-off.

The scheme could take up to 15 years to implement fully.

The system would require the establishment of a new insurance authority on a non-profit basis which would fund the new system.

The Adelaide Society's proposals are similar in many ways to Fine Gael's proposed Fair Care scheme, based on the Dutch system.

Speaking at conference today on healthcare funding organised by the Society, Labour Party Leader Eamon Gilmore said the report makes clear the introduction of a universal health insurance system in Ireland is both feasible and affordable."

"We can solve the technical questions. It is not beyond our ingenuity as a people, or our solidarity with our fellow men and women to reform the healthcare system so that it treats everyone equally and excellently.

Mr Gilmore said the bigger challenge lies first in having people understand what social or universal health insurance actually is.

See also- 'Harney's warning on free healthcare for all'

[Posted: Wed 14/04/2010]