Sir, - The threat to the VHI's community rated plans posed by, BUPA's risk related cash plans could be removed at the stroke of a pen by Ruairi Quinn in his buds get. Full income tax relief was ended by Bertie Ahern in 1994 at the behest of his doctrinaire Labour Party partners who resented VHI Plan E clients paying only 52 pence for each £1 worth of cover while those on lower incomes in the more modest Plan A paid 73 pence per £1. The result, for a married couple on Plan E in 1995/96, was an increase in cost of £124, and in 1996/97 of £248.
With full tax relief restored, a 25 year old couple paying higher rate tax would pay only £624 net for VHI Plan E in 1997/98. With BUPA, which would qualify for tax relief only - on the Essential, Plan, the comparable bill for this couple's Gold Plan would be a whacking £1,000. This would clinch things in favour of VHI, even among the least numerate, and most credulous taxpayers.
Risk related cash plans like BUPA's have never attracted tax relief, so BUPA could not shout foul. No litigation would be necessary to bring BUPA to heel by this means, and the uncertainty surrounding the VHI's future would be dispelled instantly. But has Quinn the bottle to do it? And why are we not hearing from, Bertie Ahern on this topic now? After all, he got us into this fine mess. - Yours, etc.,
Kilbride,
Bray, Co Wicklow.