McCreevy to insist VHI loses favoured status

EUROPEAN Internal Market Commissioner Charlie McCreevy is preparing to insist the Government changes the VHI’s favoured status in Ireland’s health insurance market.

This would require the VHI to considerably increase its reserves from €220 million to around €370m before the Government’s deadline of 2012.

To raise this money, they would either have to increase their premiums or sell-off some of their ancillary businesses, such as travel insurance and care clinics.