Ba mhaith liom ar dtús mo bhuíochas a glacadh leatsa as ucht go dtug tú an deis dom an cheist seo a ardú ar an Athló. Ba mhaith liom freisin mo bhuíochas a ghlacadh leis an Aire agus leis an Aire Stáit as ucht a bheith i láthair sa Teach chun an cheist seo a phlé.
We pride ourselves on having a good mix of private and public health care and also because our public health service can, for the most part, provide many of the required services. However, the Minister has acknowledged that there is a necessity for private health insurance. That has been provided by the voluntary health insurance company in a totally non-competitive market and with considerable freedom to operate on its own without regard to either its members or the Government of the day. The VHI has a very important role to play in the marketplace, a role I have supported and which I hope will be strengthened when the Minister introduces legislation in the Dáil.
However, I am appalled, and I am sure the Minister will be equally appalled, that the VHI should suggest charging higher premia to older people living in this State who wish to join. I am appalled because, as we all know, it is when we come to our latter years that we have most call on the health care service. The vast majority of the people who avail of the public health care service are older people. The VHI must be conscious of that and have stated strongly that if competition is to be introduced there should be no out for any competitor coming into the market whereby they would deal only with younger and healthier people. I accept that and think it proper.
The last time I raised this matter the Minister was favourably disposed to the introduction of a consumer's council for members of the VHI. I suggest this again because I am concerned, and I am sure the Minister is equally so, that the VHI should be not alone answerable and responsive to the public and to its members, but should be seen to be so.
Not alone did the chief executive of the VHI warn about the possibility of older members being asked to pay higher premia when joining the VHI, he also announced to all and sundry that there would be another increase in premia next year of at least 3 per cent. We on this side of the House will oppose any move by the VHI to charge older people higher premia, but if another general increase is granted it will mean that in the past two years the VHI will have increased its fees by 21 per cent, almost seven times the rate of inflation. I do not believe either the chief executive officer or the VHI generally have justified such a level of increase. They are way out of line with inflation which is currently running at about 2.4 per cent per annum.
We have all come to realise that the VHI has been allowed to increase its premia on a regular basis and is not answerable to it members. It is time the VHI came out from behind the cloud, as it were, and became answerable to the Members of this House, because it is a company which is answerable, through the Minister, to this House. It might be no harm were the chief executive and senior management staff of VHI to come before one of the committees of this House to answer the genuine concerns of Members of this House regarding the way it conducts its business.
Subscribers are always helpless when price increases are announced by the VHI. The establishment of a user's council must now be an immediate priority. It would give the members of the VHI a say. The VHI has over one million subscribers to whom it is not answerable. It certainly does not give us an opportunity to have an input into its operations or its policy. It is important that we put our comments on the record, not to be in any way mischievous, but because of genuine concern about the direction the company is taking.
For far too long the VHI has stood for high insurance costs. If we are to resolve the position whereby we are insured for everything but covered for nothing, the VHI must be made answerable and I rely on the Minister to make that happen.