Harney decision may spark VHI fees hike

VHI SUBSCRIBERS could face hikes in premiums after Tánaiste and Health Minister Mary Harney yesterday pulled back from plans to force rival companies to compensate the health insurer for its older and costlier customer base.

An emergency meeting of the VHI board will be held in the next few days to consider what it called the “very serious situation” that Ms Harney’s decision had created. The board will review the position it adopted last September to stop passing on the cost of supporting older subscribers to its general membership and to limit its price increase to just 3%.

The insurer has been dipping into its reserves since then to meet the extra costs in anticipation of receiving some €30 million in annual risk equalisation payments from its main rival Bupa.