Levies to hike family health premiums to €2k

THE Government’s new levies on health insurance policies could push up some basic premiums for a family of four to almost €2,000, it has been claimed.

Hibernian Health says its current basic rate for a family of two adults and two children costs €1,608.

However, while the implications of the Government decision to introduce a €160 levy on every adult and another €53 levy on every child with health insurance have not yet been decided, a spokesperson for Hibernian — which has more than 120,000 customers — said an increase of up to 30% is expected for a family premium with the firm.

And as a result, a figure of almost €1,900 for a basic premium for a family comprising two adults and two children is now on the cards.

To date, only Quinn Healthcare has specifically stated that it is “inevitable” that premium costs will rise as a direct result of Wednesday’s move by Government to introduce the levies on health insurance holders to help pay for insurance for persons over 50 years of age.

However, Hibernian Health has heavily criticised the move and said it risks the need for substantial increases in costs.

Quinn Healthcare has said it is “not in a position yet” to provide figures for future prices, as like all health insurers the specifics for next year’s premiums are still to be finalised.

Quinn, the health insurer for 440,000 people — and second only to VHi in Ireland — has said that its current Essential Plus Starter policy which covers two adults and two children with cover in all public hospitals and semi-private cover in some private hospitals currently costs €1,248 — a figure which could also increase.

In a statement, VHi said that “broadly speaking” it offered three types of health insurance plans, namely hospital plans; day-to-day plans; and combination plans.

The company, which has said that the levies will not lead to a premium cost rise — although “other factors” such as medical inflation are likely to cause price increases — recommends its family plan for a four-person family with young children.

The basic form of this policy currently costs €1,470.18 annually for a family of two adults and two children — the equivalent of €122.52 per month.

Tánaiste Mary Coughlan told the Dáil yesterday that it will take two months for the European Commission to approve the new measures.

However she said the Government intends to implement it on January 1, before EU approval is granted.

Labour Party leader Eamon Gilmore said: “Health insurance premiums will see changes from January 1 and the Tánaiste is saying this will be done without statutory authority.”