Medical Insurance.

Dáil Éireann Debate, Tuesday - 22 June 2004

Tuesday, 22 June 2004

Questions (93)

Thomas P. Broughan

Question:

90 Mr. Broughan asked the Minister for Health and Children if he has received an application for an increase in premium rates from the VHI; if it is intended to grant the application; the date and amount of each increase in premium rates approved since June 1997; the cumulative increase in premium rates during this period; if his attention has been drawn to the difficulties created for VHI members by the huge rate of increase in rates; and if he will make a statement on the matter. [18365/04]

Written answers

Minister for Health and Children (Mr. Martin)

Early this afternoon, notification was received from VHI stating that it intends to increase premiums by 3.8% for its hospital A to E plans and 2.5% for Options plans from 1 September 2004 as members renew. There is no increase for its primary care Healthsteps plans. My Department will now proceed to consider this notification.

The following are the premium increases since June 1997:

Effective date	% Increase
1 September 2003	8.5 (across hospital plans A to E and plan P)
	7.5 (across option plans)
1 September 2002	18
1 September 2001	9
1 February 2001	6.25
1 September 1999	9.4
1 September 1998	9
1 September 1997	9The cumulative increase amounts to 92.7%, with the average annual increase being just under 10%.

Under VHI legislation, the VHI board has the primary responsibility to set premium rates. It is a matter for the VHI board, in discharging its responsibilities as regards setting premium levels, to take account of all the key considerations, including the matter of affordability for its members.