 Cavan Monaghan TD and Sinn Fein spokesperson for Health and Children
Caoimhghin O'Caolain says the cost increase is unfair .- and will have a
severe effect on young families with children in particular.
He says its clear that now is the time to radically reform our health
service:
This was because yesterday health insurer Voluntary Health Insurance (VHI) announced a price increase from 1 February, which
will see premiums rise by between 15% and 45%.
60% of the VHI's 1.35million customers are going see prices increase by 15% .-What this means is that
the average annual family premium will rise by around €331.Premiums for other plans could see increases of up to 45%.
How will the price rise affect you?
The company in a statement blamed an expected 10% rise in claims this year and a 21%
increase in the cost of private beds in public hospitals for the increase.
It estimates that this will cost the company €60million this year and accounts for
8% of the increase. They have also announced that a further increase in the cost of private beds is
planned for next year.
VHI Chief Executive Jimmy Tolan said the decision to increase prices was
'incredibly difficult' and not made lightly.
He also said the reality was the company was operating in a broken regulatory
model which needs to be fixed.Last year VHI lost about 48,000 customers . The last time the
company increased its prices was this time last year.
The VHI claims that it has taken many steps in the last year to contain
rising costs of health insurance, including cutting consultant and private
hospital fees and a €15million reduction in annual administration costs.
It has also called for changes to the levy system which replaced risk
equalisation in 2009.Mr Tolan has described the levy system as ineffective. He said changes need
to be made to the tax credit system which provides tax relief on the cost of
insuring older customers.
Elderly to be hit hard by increase
Age Action Ireland has said that increases of between 21% and 45% on Plans
B, C, D and E options will inevitably put the cost of private health
insurance beyond the reach of many older people.
Age Action Spokesperson Gerard Scully said 'that it is precisely the same
cohort of older people, those retired on modest public or civil servant
pensions, who were hit badly in the recent budget.'
The Irish Senior Citizens Parliament (ISCP) called the increase 'the final
straw' for many older people.
The group's CEO, Mairead Hayes, urged the Health Insurance Authority to
clarify whether the increase was sanctioned by the Authority.
This afternoon, Minister for Health Mary Harney made a short statement insisting there was choice in
the health insurance market - and she stressed there were no penalties for
switching between companies.
She said there were 'no easy solutions' regarding health insurance.
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Friday, 07 January 2011 19:03