Dáil Éireann díospóireacht -
Tuesday, 26 Mar 1996

Vol. 463 No. 3

Written Answers. - VHI Premia Increase.

Seán Haughey

Ceist:

101 Mr. Haughey asked the Minister for Health the VHI premium increases that have been sanctioned in the last three years; the reason these increases have been sanctioned; whether further increases are planned; if he will refuse to sanction any planned increases in view of the fact that they are excessive; and if he will make a statement on the matter. [6114/96]

Minister for Health (Mr. Noonan,

Limerick East): In the last three years the Voluntary Health Insurance board has increased its premia as follows; January 1993, 4 per cent; August 1993, 6 per cent; August 1994, ranging from 6 per cent to 12 per cent; September 1995, 6 per cent.

In accordance with law the VHI is a "not-for-profit" organisation and premium levels are set accordingly. Premia are increased in the context of ensuring the financial viability of VHI and its ability to continue to operate the schemes of voluntary health insurance available to its 1.3 million members.

The Voluntary Health Insurance (Amendment) Act, 1996, places a duty on the board to notify the Minister of proposed increases in premia. It provides that the board can apply increases automatically after a specified short period has elapsed unless the Minister expressly issues a reasoned direction against the implementation of the increases. I have not received notification pursuant to the Act from the VHI of a proposed increase in premium charges this year. It would not be appropriate for me to state what view I would take of any such proposal in the absence of full details relating to same. However, I will give careful consideration to all aspects and implications of any such proposal which the board may present to me at a future date.