Increases a threat to universal health plan

HEALTH insurer Aviva’s decision to hit 90,000 of its customers with another fee hike — 9.5% — raises all sorts of questions, most of which have been asked many times before but never adequately answered.

The most obvious is why does medical inflation run so very far ahead of basic inflation. Even if evolving technology relentlessly pushes costs upwards, it is hard to understand increases of 45% — VHI earlier this year — and the 24.5% hike Aviva has imposed in two tranches this year.

To put those figures in context, Ireland’s consumer price index rose by 2.7% this year and euro zone inflation stands at 2.5%.