VHI chief warns of further price hikes

IF the announcement that price hikes ranging from 15% to 45% in VHI premiums from next month was not bad enough, the company’s chief executive, Jimmy Tolan, has warned that continuing increases in the cost of health cover over the coming years is practically inevitable.

The demographics of the Irish population mean the number of people aged 65 and over will almost double over the next 20 years to over one million, with a consequent increase in demand for health services and knock-on effect on the cost of health insurance cover.

The VHI has estimated that claims will rise by 10% alone in 2011 after having spent €1.3 billion on funding its customers’ healthcare needs in 2009 — the latest year for which figures are available.