Health insurance - Vhi clientele are the ones who lose out

IRELAND’S shambolic health service looks set to deteriorate further following the Government’s 20% cut in financial payments by independent health insurance companies to Vhi Healthcare, the State-owned group.

Under community rating, independent companies are compelled to pay risk equalisation to Vhi for its older customer base. Predictably, the decision to reduce compensation by 20% is welcomed by Quinn Healthcare and VIVAS Health. Not surprisingly, they resent compensating a company which enjoys a virtual monopoly in the market.

Much to the dismay of Vhi customers, however, Health Minister Mary Harney’s initiative looks certain to result in premium hikes after the measure comes into force in July. The move is one of a series of reforms recommended in the Barrington Report which also proposed loading the policies of people who take out health insurance late in life.