Vol. 445 No. 6
411 Mr. Haughey asked the Minister for Health the action, if any, he has taken to ensure that VHI increases are kept to a minimum with particular reference to their cost base, flexible working practices and pay restraints; and if he will make a statement on the matter. [176/94]
While I have no statutory responsibilities at present in relation to the determination of VHI premium increases it is the convention that such increases are determined by the VHI Board following consultation with the Minister for Health. In considering proposed premium increases I must have regard to the need to ensure that VHI has the financial capacity to continue to provide a comprehensive service to subscribers while meeting the necessary solvency requirements. I am satisfied that VHI administration expenses as a percentage of subscription income, which presently stands at 6.2 per cent, compares favourably with health insurance providers internationally.
