VHI future secure with EU risk scheme

A major step to secure the future of the VHI and ensure older people can afford private health insurance has been taken with the approval of the risk equalisation scheme by the European Commission.

Under the scheme, companies cannot cherry-pick low-cost customers and cannot charge people based on their age or state of their health. But all will contribute to a central fund that will be used to compensate those with a higher proportion of high- risk members.

A form of the scheme, including one based on a tax and levy, has been operating for the past 10 years on a temporary basis, but now with the commission’s approval, the new risk-sharing scheme will become permanent.