Rising private bed charges may hike health insurance 4%

Health insurance premiums could rise by around 4%.

The Government is to increase the charge for a private bed in a public hospital by 21%, as announced in Tuesday's Budget.

Experts say this will be passed on in some way to customers.

Economics lecturer at UCC Brian Turner said: "The Department of Health and Children work on the basis that a 10% increase in private bed charges would lead to a 2% to 2.5% rise in private health insurance premiums, whereas insurers are working on the basis that it could be a 3% to 3.3% for every 10% hike.

"So every 21% increase would translate to somewhere between a 4% and a 6.5% rise in premiums."