Insurance charges set to rise by 5%

The Tánaiste has confirmed that health insurance subscriptions are likely to rise by around 5 per cent next year as a result …

The Tánaiste has confirmed that health insurance subscriptions are likely to rise by around 5 per cent next year as a result of the Government's decision to significantly increase the charges for private beds in public hospitals.

The bed charges will increase by 25 per cent next year as part of the Government's policy of moving towards a situation where fee-paying patients have to pay the full economic cost of private facilities in State-funded hospitals.

The Irish Times indicated last month that insurance companies such as VHI and BUPA Ireland were set to pass on these additional charges to members by raising subscriptions by between 5 and 6 per cent as a direct result of the Government move.

VHI charges could be heading back towards double digit increases next year when other cost pressures are added.

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Ms Harney said the cost of private health insurance in Ireland was low by international standards and that subscribers already had tax relief on premiums.

"I believe that the impact, if any, on the numbers covered by private health insurance is likely to be marginal," Ms Harney added.