asked the Minister for Health in view of public concern in the matter, if he was consulted about the VHI decision to raise premiums by more than twice the rate of inflation; if he has given permission for them to do so; if his attention has been drawn to the hardship this increase will cause for many middle-income families; if he will intervene to cause the VHI to reduce the size of this increase, or alternatively, to load the increase so that those on the so-called luxury plans will carry a higher proportion of the higher premia; and if he will make a statement on the matter.
Written Answers. - VHI Premium Increase.
207.
In accordance with the usual procedure, my Department examined an application submitted earlier this year from the VHI to increase premium income. Having regard to the fact that the VHI have not been given an increase in premia for the last 18 months and to cost pressures which have been generated as a consequence, it has been decided, in view of the present, financial state of the VHI that the most prudent course of action to follow is to permit the board to raise its premium income by 8 per cent from 1 December 1987.
The typical annual increase for a family of four on Plan B is £33.84 before tax relief. The VHI will implement this increase in premium income in a way which will ensure that policy holders of Plans D and E (which cover the new high technology hospitals) will not be subsidised by the rest of the membership. The Deputy will be aware that these Plans D and E are obliged to be self-financing.