Private health cover up 63% since ’99
The Labour Party warns that this means thousands will be squeezed out of the private health insurance market and lose access to immediate hospital diagnosis and treatment.
The latest 12.5% VHI price increase sanctioned by Health Minister Mary Harney will take effect from September 1.
But a survey of both VHI and BUPA Ireland premium hikes, carried out by independent healthcare and risk consultant Aongus Loughlin, has revealed that the cost of private health insurance has increased on average by 63.57% in the past seven years. The overall increase in BUPA Ireland premiums is 61.9% since 1999 and VHI premiums have gone up 66.05%, he said.
These major price increases show that consumers may need to review the plans they are currently holding, said Mr Loughlin of Watson Wyatt consultants.
“Most people seem to take out Plan B with the VHI, but many of their new Life Stage plans tailored to meet people’s needs at each particular stage in life may give them more value for money,” he added.
Labour Party consumer affairs spokeswoman Kathleen Lynch said: “Private health insurance will just become more and more elitist and access to health services will just be made more difficult for a sizeable portion of the population.
“The only way to ensure everyone gets equal access to early diagnosis and treatment is to abolish the current two-tier health system which guarantees people with private insurance preferential treatment,” said Ms Lynch.
But VHI said the latest 12.5% hike is needed to fund the increased cost of private beds in public hospitals. These costs have rocketed by 109% in the past three years.
The other major factors that have lead to the spiralling cost of healthcare are our aging population, new technology, new drugs and prostheses, a VHI spokeswoman said.
