SECTOR REACTION:THE VHI'S main rivals were quick to criticise yesterday's price increases with both questioning the high costs associated with running the State's largest health insurer.
Quinn Healthcare dismissed the VHI’s cost saving measures which amount to €15 million a year and said the price increases were “a direct result of the inefficiencies” within the company.
Aviva claimed the VHI was operating without accountability and said intervention by the Government was “an urgent requirement to prevent the VHI from continually penalising its most vulnerable customers with unaffordable increases while simultaneously ignoring the significant cost savings to be made by reforming”.
Quinn Healthcare general manager Dónal Clancy said the VHI had benefited from the health insurance levy which was costing Quinn significant sums.
Revenue from the levy is used to pay for a tax relief scheme, costing more than €300 million, which is aimed at subsidising health insurance costs for people over the age of 50. The scheme was introduced as an interim measure after the Supreme Court struck down a controversial risk equalisation scheme in the sector.
Mr Clancy said the levy had directly benefited the VHI to the tune of €55 million at the expense of its competitors and criticised the company for forcing the price increases on customers despite the fact that it was the main beneficiary of the levy.
An Aviva spokesman said that if the levy was scrapped it could reduce its premiums by 30 per cent overnight.
