Fears rise VHI hike will force families out

FAMILIES will be priced out of private healthcare by the latest dramatic rise in VHI fees, placing greater pressure on the public health service, it was claimed last night.

Health Minister Micheál Martin's decision to sanction the 18% premium increase by the State-owned firm will make health insurance too costly for some families and elderly people, already struggling to pay for private health insurance, according to patients' representatives and opposition parties.

The VHI fee rise will come into effect on premiums renewed by its 1.5 million subscribers from September 1.

The company predicts the rate of claims in the coming year will increase by one fifth.

It was the fifth major rise in VHI fees in the last four years and the third in 18 months:

1998 - 9%.

1999 - 9%.

2001 - 6.25% in February and 9% in September.

2002 - 18%.

But Minister Martin conceded similar levels of increases are likely in the coming years.

The minister said it would not have been possible to veto the increase as the additional funds were needed to maintain benefits and coverage, to cater for increased claims and to cover improved treatments and technology.

The fees to private patients for private and semi-private rooms in public hospitals will also increase from August 1, along with the statutory charges for hospital inpatient services, the minister confirmed.

Health services lobby group Patient Focus in Ireland said the VHI price rise will result in some patients not being able to afford to subscribe, pushing them into the public system and swelling waiting lists.

Patient Focus chairperson Sheila O'Connor called on Minister Martin to confront hospital consultants on their charges, saying this was one of the factors resulting in the rising costs in the health service.

Fine Gael health spokesperson Olivia Mitchell said the increase will push many members into a deteriorating public system, increasingly unable to cope with demand.

Labour health spokesperson Liz McManus said: "People won't be able to afford increases of this level. The effect will be to drive them out of the health insurance market."

VHI Healthcare chief executive Vincent Sheridan said the rise was necessary to ensure the healthcare services wanted by its members could be provided.