Dáil Éireann Debate, Thursday - 28 October 2004
14 Mr. Broughan asked the Tánaiste and Minister for Health and Children if her attention has been drawn to the fact that VHI premiums have increased by almost 100% since 1997; if her attention has further been drawn to the difficulties created for VHI members by the huge rate of increase in rates; and if she will make a statement on the matter. [26342/04]
Amharc ar fhreagraI am aware that VHI premiums have increased by nearly 100% since 1997, if one includes both the increases that took effect from 1 September 1997 and 1 September 2004. While the increase is substantial, it must be looked at in the context of the obligation on VHI to meet claims in the period covered by any increases. Claims incurred increased by almost 90% from year ending February 1997 to year ending February 2004, and are projected to increase significantly in future years.
Under VHI legislation, the VHI Board is responsible for setting premium rates. The legislation obliges the board to fix premiums to provide sufficient revenue to meet claims costs and to make such provision for reserves as it sees fit. 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. The increase in premiums must be considered in this context.
