Martin under fire over latest VHI premium hike

HEALTH Minister Micheál Martin’s health insurance market policy was attacked by the Progressive Democrats yesterday following the VHI’s latest price increase.

The 3.8% increase was also described as unjustified and illogical by the Labour Party, which questioned if the Government was planning to privatise the semi-State company.

Drawing parallels with Tánaiste Mary Harney’s focus on general insurance prices, PD TD Fiona O’Malley said the consumer needed more players and greater competition in the health insurance market to keep prices down.

“It has been government policy for years to increase competition in this sector in order to benefit the consumer in terms of choice and price. Yet, we have seen very little progress. Consumers are still waiting and hoping for more competition.

“It doesn’t look like this has been a priority for health reform. But with over half the population covered by health insurance, it is of direct relevance to healthcare in Ireland,” she said.

She said Ms Harney had worked to make the general insurance market more attractive to overseas companies and had gone out to woo new players to drive down premiums.

“We need the same level of effort and political will to be exerted in the health insurance market. Otherwise, consumers will continue to face price hikes,” the Dun Laoghaire TD said. Defending the price increase, VHI chief executive Vincent Sheridan said it was smaller than anticipated due to a better performance brought about by greater efficiencies.

But last night, BUPA claimed its members would continue to have better value health insurance than VHI customers, following the price increase.

“The increase means that the VHI mainstream product, Plan B Option, for an average family of two adults and two children, will be €218 more expensive than BUPA Ireland’s competing scheme, a difference of 18%,” the company said.

“With no penalty for those wishing to switch insurers, there has never been a better time to shop around and to join BUPA Ireland,” the company added. And BUPA Ireland has no plans to increase its prices this year, it said.