Oireachtas body to question VHI on 9% rise

The VHI is to appear before an Oireachtas committee next week to explain a proposed 9 per cent increase in premiums in September…

The VHI is to appear before an Oireachtas committee next week to explain a proposed 9 per cent increase in premiums in September.

Fine Gael called on the Government yesterday to freeze VHI's proposed increase pending an investigation by the Oireachtas Committee on Health and Children of the claim by the State-owned health insurance company.

At the party's frontbench meeting yesterday, concern was expressed that the Minister for Health, Mr Martin, as both regulator of the industry and owner of VHI, was "prepared to sit on his hands" while a 15.25 per cent increase was imposed on subscribers in less than 12 months - there was a 6.25 per cent increase last February.

In a statement, the party frontbench said the very least the Government could do was to freeze the increase while the committee examined the claim.

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Fine Gael's health spokesman, Mr Gay Mitchell, said the committee had accepted the proposal yesterday to examine the matter.

"It is totally unacceptable for the Minister to approve a 9 per cent increase in VHI premiums following a 6.25 per cent increase in February, at a time when the company is reporting huge surpluses. To do so without accounting to the Dail for such approval would be against the interests of the public who are entitled to an explanation."

Mr Mitchell said he wanted Mr Martin to confirm he would await the outcome of the committee's examination next Tuesday before making any decision on the matter.

"If the Minister does not await the outcome of the Oireachtas hearing, I will be seeking his attendance at the committee to explain himself," Mr Mitchell said.