Private insurers are to make a €125 million advance payment to the HSE to help offset the cost of overruns in the health service.
The once-off payment is for private patients already treated in public hospitals but whose claims have not been submitted to insurers.
The announcement was made by the Department of Health as its officials met officials from the troika this morning for talks about the €370 million over-spend in the health service.
Minister for Health James Reilly welcomed the agreement between his department and the insurers on an “accelerated payment” this year.
He said it would improve cash flow between now and the end of the year and provide much needed funds for hospitals over this period.
The Government plans to publish legislation for a permanent risk equalisation scheme in health insurance tomorrow.
The Health Insurance (Amendment) Bill, which will take effect from next January, provides for a strengthened scheme to replace the current interim scheme.
Risk equalisation involves financial transfers between different insurers to take account of their differing costs arising from the age or health of their customers.
It operates to protect the system of community rating, whereby older and sicker people can buy health insurance for the same price as younger and healthier customers.