The cost of new drugs and technologies are among the VHI's reasons for a fee increase, writes Christine Newman.
Consumers have faced increases in VHI subscriptions before, but the latest move has raised fears that it could be one of the highest yet.
The VHI is justifying their request for an increase by citing changes in medical procedures and population profiles.
A spokeswoman said yesterday that the cost of medicines were more expensive every year.
There were new technologies, diagnostic procedures and new drugs.
She gave an example of a new PEP scanner which was a full body scanner operating in the Blackrock Clinic which costs €1,000 a scan.
Wage inflation was increasing at a high rate in the health sector and with the present situation was likely to increase further.
She also cited the ageing population as a factor. There were more people now over 60 who would use the services.
As a general rule, people were using the health services more as they became more aware of health issues.
The cost of claims to the VHI has risen from €6.5 million per week five years ago to €10 million a week this year, she said.
However, the chief executive of the Consumers' Association of Ireland, Mr Dermot Jewell, is totally against any increase and said consumers could not afford it.
He referred to the recent Forfás report, which was prompted by significant growth in the number of consumer complaints on price rises, which showed Ireland was the second most expensive place to live in the euro zone.
Mr Jewell said that after that report the Tánaiste, Ms Harney, promised to bring proposals to Government to tackle high prices, saying that the findings were "disturbing".
"The consumer just cannot afford these price rises," he said.
One group which will welcome any VHI price increase is its rival health insurer, BUPA Ireland.
In a statement released immediately on speculation about possibly one of the highest VHI price increases, BUPA claimed that if the increase were granted, it would serve to widen significantly the price differential between the two.
The statement added that BUPA had no plans to increase prices this year.
The VHI has always claimed that the schemes are not comparable.
Unlike its larger rival, BUPA Ireland does not need ministerial sanction for subscription increases.
The VHI has lobbied for the introduction of risk equalisation in the health insurance market.
It claims 2 per cent of every VHI premium increase is caused by the absence of risk equalisation.
Risk equalisation involves transfer payments between insurers to spread the claim costs of less healthy members among all the companies on the market, according to market share and the number of claims they pay.
It means all health insurers pay a share of all the claims of older, sicker members and is aimed at discouraging companies from targeting younger, healthier people as members.
BUPA has always opposed its introduction as anti-competitive, arguing that it amounts to the smaller company in the market subsidising the larger operator.
VHI's year's increase of 9 per cent in September last year meant the average family health insurance policy, Plan B, covering two adults and two children, rose by £64.62 (€82.05) to £782.50 (€993.57) from September for members who were part of a group scheme.
For an individual, the increase added £24 (€30.47) a year to their premium, bringing it to £286.85 (€364.22).