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Dáil Éireann debate -
Wednesday, 3 Jun 1992

Vol. 420 No. 6

Written Answers. - VHI Levy.

Bernard Allen

Question:

114 Mr. Allen asked the Minister for Health if he will make a statement on the recent decision to impose a £3 million levy on the VHI; and if he will give an assurance that the imposition of such a levy will not force VHI premiums upwards.

On foot of the Government decision that a £3 million levy be paid by the Voluntary Health Insurance Board to the Exchequer the Government decided that the annual increase in maintenance charges will not be applied to charges for semi-private and private beds in public hospitals before mid-1993. This will be of benefit both to the VHI and to its members as an increase in hospital maintenance charges would normally lead to a higher increase in premiums. On the basis of an increase similar to that applied from last August the decision to defer the mid-1992 increase in charges is estimated to save the VHI £3 million in a full year. Therefore the levy will not have an adverse effect on premium levels paid by VHI members.

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