Minister for Health and Children Mary Harney said today that price increases in health insurance premiums would be a "major burden for many families" while Fine Gael warned that the hikes could lead many people to cancel their cover.
VHI and Quinn healthcare announced this morning they are to raise premiums by 23 per cent and 16 per cent respectively from the beginning of 2009.
Quinn healthcare said that its price increases were “mainly due” to the new Government levy and the 20 per cent rise in private bed charges.However, VHI said its price hike was not connected to the introduction of the levy.
Speaking at a commermorative conference in Crumlin Hospital this afternoon Ms Harney said she was "very concerned at the huge price increases (in health insurance premiums) announced today" which she felt would be "a major burden for many families."
She emphasized however that the VHI had absorbed the recent Government health insurance levy, as it has said it would, and pointed out that if it weren't for that levy health insurance premiums "would increase four-fold'" for many people.
The Government had yet to receive clearance from the EU, she said.
Fine Gael's health spokesman Dr James Reilly said that the increased prices were due 'ill-judged' measures introduced by the Government.
“Government actions in imposing a health insurance levy and increasing bed charges have distorted the health insurance market to such an extent that it is pricing customers out of the market," said Dr Reilly.
He said that many young people would be likely to cancel their cover due to rising prices and voiced concern for older people who may lose their medical cards and not be able to afford health insurance.
“If the Government had wanted to completely mess up competition in the health insurance market they couldn’t have done a more thorough job. Instead of meeting the challenge of re-designing risk equalisation the Minister has foisted interim measures on the health insurance system which have made things worse for everyone," said Dr Reilly.
Sinn Féin's health spokesman Caoimhghín Ó Caoláin said the increases would be a huge burden on people on low incomes and said many would have to give up their policies.
Mr Ó Caoláin accused the Government of causing a "health funding chaos" and called for the establishment of a Health Funding Commission to "plan the transition to a fairer and more efficient system".