VHI premium rise - Health of the public held to ransom

The VHI’s request for an 8.5% increase in the average cost of its insurance is a challenge to the Government’s stated intention of minimising the rate of inflation, which is running at around 5%.

Allowing VHI to increase its charges by more than the rate of inflation will affect more than 1.5 million customers, and will inevitably contribute to inflationary pressures.

On average the cost of insurance premiums has increased by 25% in the past two years.

Health Minister Mary Harney has 28 days to object to the increase, but the insurance company’s chief executive officer, Vincent Sheridan, has stated that he does not expect Ms Harney to intervene in the issue.

He seems to accept that inflation in the area of health should naturally run higher than overall inflation. Why?

His attitude raises questions about whether the VHI has been making any effort to keep down rising costs, or has merely been fuelling inflation by paying increased prices without question.

The VHI seems to expect the Government to go along with it in the same unquestioning way.

The company, which boasted of a surplus of €70 million last year, professes no desire for profit.

It is supposedly only concerned about the welfare of its members.

The Government has a duty to ensure people are not ripped off by having their health held to ransom.