Cost of private health insurance set to increase by at least 5%

THE cost of private health insurance is expected to rise by at least 5% next year after the Government’s surprise announcement of a 25% price hike in the cost of private beds at public hospitals.

Up to 1.5 million private patients have already been forced to absorb huge price rises, with Voluntary Health Insurance (VHI) and BUPA increasing premiums by 36% and 37.7% since 2001.

VHI said yesterday they would expect the price hike revealed in the 2005 Estimates will force them to seek price hikes of at least 5% in next year’s review.