Price rises an 'utter betrayal'

REACTION: ANGER AT the VHI’s decision to increase its private health insurance premiums by as much as 45 per cent has intensified…

REACTION:ANGER AT the VHI's decision to increase its private health insurance premiums by as much as 45 per cent has intensified.

Chief executive of the National Consumer Agency Ann Fitzgerald described the price rises as “outrageous” and “extraordinary in the current economic climate”. She suggested they had been “designed to provoke a political reaction or to shape the policy of an incoming government”.

Fine Gael health spokesman Dr James Reilly stepped up his condemnation of the price increases, saying they were an “utter betrayal of the VHI’s most loyal customers and a slap in the face of the Government who brought in the health levy to insure this sort of thing would not happen”.

Dr Reillly also castigated Minister for Health Mary Harney for being absent during what he described as one of the worst crises to hit the health sector in recent years. “We have swine flu on the increase, unprecedented numbers of patients on trolleys and the VHI in free fall. She should be out there showing solidarity with patients, staff and consumers,” he said.

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From February 1st the premium for an adult on Plan B will go up by €317 to €1,224, while Plan B Options premium will rise by €444 to €1,430. Some 29 per cent of the health insurer’s customers have one or other of these policies.

Ms Fitzgerald said: “I thought the language that the VHI were using was interesting and they seemed to be putting a lot of blame on older people.”

She said it was inconceivable how the VHI could come up with a 45 per cent increase for Plan B Options given the economic climate and urged consumers to seek alternatives.

Active Retirement Ireland chief executive Maureen Kavanagh said it was disheartening to see older people portrayed as an ever-increasing burden on the health system.

“Active Retirement Ireland does not accept the view that . . . older people will become more and more of a burden on our services,” she said.

“We know from the experiences of our 23,000 members that if older people are supported to keep mentally and physically healthy, they can continue to lead independent lives well into their old age and are far less likely to need ongoing support from the health system.”

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor