Martin approves 8.5% increase in VHI premiums

The Minister for Health, Mr Martin, has approved a request from the VHI for an 8.5 per cent premium increase.

The State-owned health insurer confirmed this evening a premiums rise would be introduced from September 1st, following the receipt of a letter from the Minister this afternoon.

This decision follows a meeting between Mr Martin and the VHI yesterday.

The VHI reported a 130 per cent increase in profits to €33.8 million in the 12 months ending in February 2003, according to its annual report.

This latest rise brings to 41.75 per cent the total rise in premiums for VHI subscribers over the past three years. General inflation over the same period increased by 13.2 per cent.

However, medical inflation is accepted as running at up to 10 per cent per annum.

Subscribers on the VHI's most popular plan B product with a family of two adults and two children will pay an extra €99.66 per annum; individuals are facing a €36 increase.