Sir, - The VHI is a candidate for privatisation. If the sell-off proceeds the Government will recommend that community rating, according to which there is no premium loading for the elderly, be retained. "Recommend"? Under the community rating principle, together with the not-for-profit ethos of the publicly-owned VHI, Ireland has enjoyed a uniquely fair and accessibly-priced private health insurance system. The level of care and the support of the elderly and sick by the young and fit were the guiding principles, to which the level of profit was secondary.
Could we not retain this civilised Christian idea, or is profit-at-all-costs to intrude here as well? I am afraid that if full privatisation goes ahead we will realise what we had only after we have lost it. At that stage the Government's recommendation will be worthless, we will have no comeback, and premiums and the availability of cover will be dictated largely by the demands of shareholders.
I remain to be convinced that, in this instance, competition will be for the benefit of the consumer. If we are to have lower premiums for the same cover let the Government insist that all competitors in the market must operate according to community rating and risk-equalisation, with VHI in the commercial semi-State sector. Then no one can complain that the playing-field is not level, the most vulnerable subscribers will be protected at no cost to anyone, and the Government retains some responsibility. Do we not vote for them to look after our common interests? BUPA's complaints of unfair competition ring a little hollow. Does it perhaps mean that it could be making more money if community rating and risk-equalisation were removed, leaving VHI to take care of the elderly and ill who are already on its books and cannot get cover elsewhere? - Yours, etc.,
Charles Bagwell, Millbrook, Straffan, Co Kildare.