The VHI has confirmed that it intends to substantially increase its subscription charges, leading to calls for the Minister for Health and Children to veto the price hike.
The health insurance body has put the Department of Health on notice that it intends to make the increase, with some reports putting it as high as 18 per cent. However, neither party would reveal the exact percentage.
Consumer groups and opposition political parties have called on the Minister for Health to stop the increase, which he has to do within 28 days of the notice being given which will be the end of July.
A VHI spokeswoman said they had put their proposal to the Department of Health but she would not confirm the percentage increase sought.
She said if the Minister allowed the increase, the subscriptions would be increased on September 1st next.
The spokeswoman said there were a number of reasons the VHI was seeking the increase, among them new medicines, technology and diagnostic procedures, wage inflation in the health sector and an ageing population.
A Department of Health spokesman confirmed that last week the VHI had put them on notice that it intended to increase its subscriptions and by how much.
"We haven't confirmed the percentage of the increase. The Minister for Health has 28 days to prevent the VHI from going ahead with it. There will be discussions between the Department and the VHI in the meantime."
However, the Consumers' Association of Ireland yesterday condemned the increase and said the consumer could not afford the price increases.
The association's chief executive, Mr Dermot Jewell, yesterday called on the Minister to veto any price increase.
Mr Jewell said the association would not agree with any price increase.
"Even if the VHI wanted an increase much less than the supposed percentage of 18 percent, we still would not agree. It all comes down to affordability for the consumer," he said.
Fine Gael's health spokeswoman, Ms Olivia Mitchell TD, said: "It's going to force more people out of private healthcare and that will put more pressure on the waiting lists in the public sector."
Ms Liz McManus, the Labour Party's health spokeswoman, said the Minister needed to tell everybody exactly what was going on, how much the increase was, and on what grounds it was sought.
VHI's rival, BUPA Ireland, in a statement yesterday said the speculated 18 per cent price increase would make VHI 32 per cent dearer than BUPA's comparable product, Essential Plus, for an average family of two adults and two children.
BUPA said it had had no plans to increase prices to its customers this year.