VHI to cut cost of premiums for 200,000 children

THE VHI has denied the e20 million in savings it is using to slash the cost of child cover is “fat’” from the private healthcare system.

VHI chief executive Jimmy Tolan said the savings resulted from a very hard fought set of negotiations with private hospital providers.

While many private hospitals were losing money, they realised the situation VHI customers were in and had acquiesced to their request, he said.

Mr Tolan said they also expected that the cost of consultant per procedure would actually decrease this year.

The health insurance company is to reduce premiums for 200,000 children on its most popular plans to e200 — a reduction of at least e100 per child, from next month.

The VHI, which has 1.5 million members, said the initiative was taken in response to concerns raised by parents in conversation with staff at their contact centre.

Mr Tolan said the insurer knew that many families were feeling the impacts of the deteriorating global economic environment and experiencing changed financial circumstances.

Nevertheless, parents still considered it very important to have the highest quality health insurance cover in place for their families.

“Almost 200,000 children and their parents will benefit from this measure and we hope that this will go some way to help alleviate the pressures on families,” Mr Tolan said.

He said the reduced premiums for children on Plan B and Plan B Options would be funded through the expected savings of e20m achieved through a range of cost containment initiatives right across the organisation, including negotiations with providers of medical services.

The annual premium for a family of two adults and three children on Plan B will now be e2,256, a reduction of e300, while on Plan B Options it will be e2,400, a fall of e360.

Members on Plan B and B Options who renewed their plans in the last three months will also receive the reduced rates from April 1 next.

Mr Tolan has stressed that the primary driver of the increase in medical costs was the increase in access to medical care.

He pointed out that the number of procedures carried out in private hospitals and paid for by the VHI on behalf of their members increased by 16%.

Five years ago, the VHI paid for about 800 coronary angioplasties which is a life-saving operations where a narrowed or obstructed blood vessel is mechanically widened. Last year, it paid for 2,600 of these procedures to be carried out.

And two years ago, the VHI paid for 125 members to be treated with Herceptin, a drug used to treat late stage breast cancer. Last year, it paid for 200 members to access the treatment that costs e25,000.