Voluntary Health Insurance premiums are to rise in September. The VHI yesterday dismissed as speculation reports of a 9 per cent rise, saying it had not yet established what increase it needed to keep up with rising costs.
A spokeswoman said medical inflation - the annual rise in the cost of health services - was 7 per cent to 12 per cent worldwide.
The VHI must obtain sanction from the Minister for Health and Children for subscription increases, and its chief executive, Mr Oliver Tattan, is preparing this year's submission. The increase will apply to subscriptions from renewal dates after the start of September.
A VHI spokeswoman said the rising cost of new treatments and the ageing population were among the factors which made a premium increase necessary.
Another factor pushing up its costs was the delay in introducing the Government's "risk equalisation" scheme, meant to ensure that the cost of insuring older - and more costly - members was shared fairly by health insurers. In the Republic the VHI has a preponderance of older members compared with BUPA Ireland. Under risk equalisation, the VHI would be compensated by BUPA Ireland.
Government plans to set up a Health Insurance Authority, which could operate a risk equalisation scheme, have not yet been implemented.
email: pomorain@irish-times.ie
weblink: www.vhihealthcare.com (VHI) - www.bupaireland.ie (BUPA Ireland)