Yesterday VHI Healthcare announced its fourth price increase in three years. I have no doubt that other health insurers will follow suit in the near future. It could be perceived that this Government is in cahoots with insurers in efforts to drive as many families as possible out of the health insurance market. More than 6,000 people a month are giving up private health insurance. The number leaving exacerbates the problem of providing a sustainable health insurance model. This Government has committed to the implementation of universal health insurance but all policies pursued by the Government have undermined families in their efforts to retain their private health insurance.

Last night I raised the issue of the costs charged by some private hospitals to private health insurers. In one case a private hospital billed an insurance company €17,000 for one night's accommodation with a bill of €2,000 for surgical procedures.

The Tánaiste's policy for universal health insurance would ensure that as many people as possible would retain private health insurance while the Government would pay the premiums for those who cannot afford to pay. However, the situation seems to be unsustainable. Families are making decisions on whether they will stop paying for private health insurance or else not fill the tank with oil or gas or make other basic cuts in household expenditure in order to fund that private health insurance. This expenditure on private health insurance is not a luxury. The Government encourages people to take out private health insurance but every other policy decision undermines them.

Will the Minister for Finance reverse the cap on tax relief for private health insurance, in view of the fact he said only gold-plated health insurance policies would be affected? On the contrary, it is affecting every family in this country currently attempting to retain their private health insurance. Will he reverse that attack on ordinary families?

The recession has been very tough on working families. The last thing families need now is an increase in the cost of private health insurance. At a time of increasing competition in the market and with new players seeing the opportunity for themselves, I share the wonder expressed by many people as to why prices are going up and not down. The Deputy will be aware that the Government has no legal power to intervene in the pricing set by VHI or any other insurer. However, we are very concerned about the cost of standard health insurance for hard-pressed families. That is the reason the Minister for Health, Deputy James Reilly, set up a consultative forum under an independent chairperson, Mr. Pat McLoughlin, to work with health insurers, the Department of Health and the Health Insurance Authority on the issue of containing costs. Mr. McLoughlin's report on the first phase of this work was published on 26 December 2013. He has started on the next phase of the work which is a study in greater depth of the key drivers of rising costs and how these can be addressed. He will report within three months.

The first McLoughlin report on costs made recommendations in a number of areas, including adopting a co-ordinated approach to identifying and tackling fraud in the industry. It published data on funds recovered from hospitals and consultants. The report also calls on the industry to fund a whistleblower initiative to assist in uncovering fraud. The report acknowledges the important role of clinical audit in identifying unnecessary claims. It is vital the industry makes best use of this tool to address rising costs. The report calls on insurers to make better use of existing information sources to challenge payments, in particular in respect of the most appropriate places for providing treatment, to ensure patients receive quality treatment at the lowest possible cost. Implementation of the policy of money following the patient will support this action by replacing daily charges with case-based charging.

Addressing the age structure of the private health insurance market is also important. The Minister for Health, Deputy Reilly, is considering measures to encourage more young people into the market, including the introduction of lifetime community rating to encourage younger people to take out private health insurance. The industry can make better use of existing legislation by discounting premiums for full-time students under the age of 23. The report also makes a number of recommendations about the processing of claims and admission and discharge procedures. The Minister is committed to progressing these recommendations in consultation with stakeholders. The Minister supports Mr. McLoughlin's recommendations and is committed to making progress in this area.

We appreciate the Tánaiste sharing in the wonder but we would much prefer if he shared the responsibility for the escalating costs of private health insurance. Every Government policy is inflating the cost of private health insurance for hard-pressed families. I agree that because of the recession there is high unemployment and the country is in difficulty. The bottom line is that the Minister for Finance, with one fell swoop, drove thousands of people out of the private health insurance market. The spurious claim that this would only affect gold-plated health insurance policies is not credible. Every family in the country will be affected by the cap on tax relief. The Tánaiste's reply to my question gives no comfort to any family deciding whether private health insurance can be retained.

Does the Tánaiste agree that the Government is undermining the health insurance market? The debt spiral continues and hard-pressed families are finding it increasingly difficult to retain private health insurance. The Government's policy is undermining intergenerational solidarity, community rating and the subsidising of the old by the young. I ask the Tánaiste to reverse the tax relief cap and consider introducing a policy to attract young people into the private health insurance market before it crumbles.

There is a problem of rising premia costs in the private health insurance market. The Government is taking its responsibilities seriously with regard to rising health insurance costs. As a consequence, the Minister for Health established the forum under the chairmanship of Mr. McLoughlin. The initial report identifies a number of areas that need to be tackled and addressed. A further body of work is under way and will report within three months.

There are a number of aspects to the issue of rising costs in the health insurance market, one of which was instanced by Deputy Kelleher. I do not understand why a health insurance company should receive a bill for €17,000 for one night in a hospital. This is one of the issues which needs to be examined.

The Tánaiste is in a position to find out.

The problems associated with rising health insurance costs and health insurance premia are not new. The Government is determined to get to the bottom of what is driving the rising cost of health insurance and to try to get it under control for families who are under pressure trying to pay for it. Part of the problem is to do with over-charging and with the competition for the young, healthy people-----

The budget had a lot to do with it.

The budget has nothing to do with it.

We are over time.

Every family's health insurance policy is gold-plated, according to this Government.

That is just taking a political swipe. There is an issue about the cost of health insurance premiums and the Government is addressing it.

Ninety per cent of premiums.

That is why they are being increased by 5% today.