THE number of people with private health care is showing a marked decline as people struggling with unemployment are forced to cancel their insurance.

In the space of just nine months, 32,000 people have ended their health coverage with VHI or other agencies, according to the Health Insurance Authority.

A large number of people – 2.267 million – still have private health cover, but concerns have been raised about the rapidly increasing fall-off in renewals.

The number covered by health insurance reached a high of 2.299 million in December 2008 but has fallen in every quarter since.

The Department of Health said there "has been a small decrease in the number of people covered under a private health insurance contract. It is not clear at this time the extent to which this is due to individuals ceasing to hold private health insurance or to individuals not taking out private health insurance for the first time.

"In the case of individuals who may have ceased to hold private health insurance, no survey of reasons for such a possible cessation has taken place, so it is not possible... to give any numbers of, or statement with regard to, individuals who have ceased to hold private health insurance due to income pressure.

"Data is not available at this time with regard to the use of health services by persons who may have ceased to hold cover. However, all persons who hold private health insurance also have eligibility for services as public patients in acute hospitals."

Fianna Fáil's Michael McGrath said: "It is one of the last things that people will relinquish but increasingly people simply have not got the money to renew their premium.

"As the renewal notices are arriving in the post, people are seeing the increased costs and invariably more and more people find that they are not in a position to renew.

"Inevitably, we will see a significant reduction in the numbers covered over time and it will result in a greater burden on the public health system.

"Pressure is going to have to be brought to bear on insurers to curb their price increases. The root cause is the inflation in medical costs, which has far outstripped inflation and while we have seen costs come down across the board in other areas, we now need to see that in our health system."

According to the Health Insurance Authority, the decline this year has been the first time that market size has reduced since the authority was established in 2001."