VHI plan 8.5% hike

The VHI's 1.5 million subscribers are facing an 8.5% increase in premiums.

Reports this morning say the health insurance firm has submitted an application for the increase to Minister for Health Mary Harney.

The increase will come into effect in September unless Minister Harney rejects the proposal within the next 28 days.

A VHI spokesperson claims the price hike is linked to a recent increase in the price of private hospital beds in public wards, as well as rising drug costs.

This morning's reports say Minister Harney may reject the VHI request on the grounds that it could fuel inflation.

Seven years ago, former Minister for Health, Micheál Martin vetoed a similar VHI proposal for this very reason.