The Government has promised that insurance premium costs will not be excessive under the planned Universal Health Insurance (UHI) scheme.

Health Minister James Reilly, introducing the White Paper on UHI today, has claimed that premium costs under the new scheme, if it was in place today, would probably end up being less than the current private insurance average of €920 per person per year.

This was if all the proposed UHI efficiencies were put in place. However, he said it was not possible at this stage to give a precise figure for individual premiums under the new scheme.

He said costs both to the individual and the State under the new system, due to be introduced in 2019, would be strictly controlled.

The Government says a series of measures will be put in place under UHI to manage costs, including setting up a Healthcare Pricing Office. If says UHI, which will provide equal access to care for everyone, must not cost more than the current two-tier health system.

It says a properly managed UHI system, which will abolish the distinction between public and private care, should actually deliver lower costs than under the current system.

Under UHI, every member of the population will have mandatory insurance, which they will take out with one of around four designated insurance companies. This would give everyone equal access to a 'basket' of basic hospital, GP, mental health and other services. Those requiring additional services (eg. more luxurious hospital accommodation) not included in the basket will have to take out extra insurance cover.

As yet it has not been determined the precise range of services will be covered under the basic care package.

Under UHI, the whole population will be insured, with some having their costs completely covered by the State and others receiving varying degrees of subsidisation.

The State will pay the premia of all those currently covered by medical cards, while it will subsidise, partially or completely based on income, those who currently would not have medical cards and cannot afford private health insurance.

Minister Reilly has claimed this group would be the 'real winners' under the UHI scheme in terms of comparing the level of access to care they have now and under UHI, and especially since people in this category would become entitled to free GP care when it is introduced.

Those who already have health insurance will continue to pay premia as at present, but according to the Government's argument, will get better value for money in terms of access to services, and the premia are likely to be lower than what they are currently paying to insurance companies.

This group will also be subsidised under the new system, similar to the way they are currently through tax relief on insurance premiums and medical expenses. This group will also be entitled to fre GP care when it is introduced.

The current tax relief system for insurance and medical expenses will be subsumed into the overall system of State supports for individuals under UHI.

The Government White Paper says under the new scheme, insurance companies will not be allowed to offer plans that deliver faster access to care - everyone will have equal access.

The White Paper also promises that waiting lists under UHI will be significantly lower than at present.

The system will include a 'money follows the patient' scheme for financing hospitals and other healthcare facilities. This will lead to the end of the 'block grant' system and will pay hospitals based on their levels of activity. The Government says this will be strictly controlled to prevent potential abuses.

Designated insurers under the scheme will purchase health services from providers.

The Government says free GP care, which is due to be introduced by 2016, will be an essential part of UHI.

"This is absolutely vital if we are to establish a new model of care where more people are treated in the community instead of hospitals."

It says removing fees at the point of access for GP care will help reduce long-term costs in the health system, as fewer people will be treated in expensive hospitals.

Minister Reilly, launching the White Paper, said that while progress had been made in reducing waiting lists and trolley waits, there was a limit to how far reform could progress with the current system and a radical change was needed.

He described UHI as the biggest change to the health system since the foundation of the State.

Taoiseach Enda Kenny, speaking at the White Paper launch, said this was a 'once in a generation' chance to put together a health system that was 'fit for purpose in a modern republic'.

He stressed that there would be rigorous cost control in the UHI system.

View the Government's explanatory document on UHI

UHI - what is it and will it work?