VHI to hike charges by 8%

VHI Healthcare is to increase its charges by an average of 8%.

The company says the price hike will come into effect from February 1 in order to fund high-quality healthcare needs of its customers.

The price of a family policy will rise by €180 a year while a single person's rate will increase by €90 per annum.

The VHI has lost 120,000 customers during the last year.

"As a not for profit organisation the sole purpose of the price increase is to fund the healthcare needs of our customers," said VHI Chief Executive Jimmy Tolan.

"We are particularly aware of the pressure that families are under and have kept the cost of a family of four on Plan B lower than it was this time last year.

"Our overall price increase is significantly lower than our competitors."

Admitting that the company expected 2010 to be a "challenging" year, Tolan said: Within a highly competitive market place it is not possible for Vhi Healthcare to continue to sustain annual losses in excess of €170m in funding the healthcare needs of its older customers and due to the absence of a robust support mechanism for older members of society it is becoming inevitable that older members of society will pay significantly more than younger members of society for their health insurance".