1.5 million face hike in health insurance

UP to 1.5 million people face a further hike in private health insurance costs on foot of Government plans to increase the cost of a private hospital bed by 25%.

The VHI last night confirmed the additional charge “will inevitably have a knock-on effect on health insurance costs”, but could not say when the hike would take effect. VHI costs have already soared almost 30% since 2002.

Tánaiste and Health Minister Mary Harney yesterday tried to justify the 25% increase, arguing that insurers should be meeting the full cost of private beds, not depending on Government subsidies. She said even with the increase in the charge raised by hospitals from private beds, the Government was still paying one third of the cost.