Quinn Healthcare to increase premiums

Customers of Quinn Healthcare look certain to be hit with a second hike in their premium payments as the company passes on the impact of the recently increased private insurance levy.

The company revealed that its 2012 higher prices had not factored in the 40% rise in the health insurance levy.

Managing director Donal Clancy said the insurer “could not absorb

Quinn Healthcare’s competitor Aviva has said it will add 15% to its policies from February onwards in a move which follows four increases for its 350,000 customers since 2009.

It had announced this price scheme before the levy figures were revealed and it is keeping its offers under review.

This month, the Government revealed that adults would pay €285 as a health insurance levy instead of €208. The levy on children rose from €66 to €95.

The size of the rises took insurers by surprise.

The hikes are coming at a time when thousands of people are abandoning their premiums to save money.

In the first six months of 2011 43,000 people left the private health insurance market.

Mr Clancy told the Sunday Business Post when Quinn Healthcare put prices up by 12% for 2012 the levy increases were not known.

However, he said the company was hoping to keep the average additional hike as low as possible.

Quinn Healthcare could not be contacted for comment yesterday.

Fianna Fáil said the latest development was a direct response to a costly Government strategy.

Health spokesman Billy Kelleher said Health Minister James Reilly was pursuing a “dangerous policy” by adjusting the levy and that this was putting pressure on families.

“Minister Reilly has been totally dismissive of genuine concerns being brought to his attention and we see again today the results of his policy,” Mr Kelleher said.

“At the time the 40% increase in the health levy was announced I made it clear that it would be difficult for health insurers to maintain the status quo. Quinn Healthcare is now of the view that it cannot absorb an increase on this scale and that it will be forced to raise the cost of insurance once again,” he said.

When he announced the levy Dr Reilly said he would not accept that insurers would have to pass it on to customers.

VHI, which welcomed the levy increase because it would help fund the care of older patients, has said it would not be adjusting premiums to fund the additional charge. The prices of its corporate plans are due to rise.

The levy will be applied to all premiums taken out or renewed in 2012 and it is supposed to help care for elderly patients.