53,000 cancel health cover

More than 50,000 people have cancelled private health insurance policies in the first nine months of this year, putting increasing pressure on a creaking public hospital system.

Latest Health Insurance Authority (HIA) figures confirm that, at the end of September, just under 2.2 million people had in-patient insurance cover.

And, this week, VHI warned of a 50% premium increase because of plans to charge for private beds in public hospitals.

VHI healthcare chief executive Declan Moran said the insured population could not afford the increase that would hasten the fall in those buying insurance.

HIA figures showed 12,000 stopped contributing to private health insurance between July and September. It brought the total for nine months to 53,000.

The percentage of the population with in-patient health insurance plans now stands at 47.5%.

In addition to those insured with in-patient plans, 106,000 people are insured with products solely providing out-patient benefits or health insurance cash plans.

Health Minister James Reilly is to call in the board of VHI to discuss the threat of a premium hike. He has appointed consultancy firm Milliman to look at how VHI can make savings .

Aviva Health has asked to meet Dr Reilly to discuss the matter further

Meanwhile, new VHI rules will mean policyholders who switch, or buy a different plan after January 1, will be subject to new waiting periods for in-patient cover:

* Under 55: 26 weeks

* 55-64: 52 weeks

* 65 or over: 104 weeks