VHI premiums - Many factorsto blame for price hike

Voluntary Health Insurance (VHI) premiums, which have more than doubled since 1999, are due to go up by a further 12.5% in September, after the company announced losses of €32 million for last year.

The State-owned insurer, which had a surplus of €3.9m in 2004, attributed the losses to the absence of risk equalisation in the community-rated health insurance market.

Health Minister and Tánaiste Mary Harney had announced that risk equalisation would be activated at the start of this year. This system would compel competing health insurers to compensate the VHI for its greater number of older and more expensive customers.