The VHI has told the Department of Health and Children it expects to lose some of its key business to its competitor BUPA Ireland. The forecast was made in June as part of an unsuccessful application for a 9.5 per cent increase in subscriptions.
Late last month it was announced that the VHI has been granted a 6.25 per cent increase from February.
Documents released under the Freedom of Information Act also show that the VHI urged the Minister, Mr Martin, not to increase the charges which public hospitals make for private beds.
An ESRI research report published last October showed that public hospitals get back only half the cost of caring for private patients from insurance companies.
In the event, the charge for private beds was increased in the Budget by 3 per cent.
In its application for a 9.5 per cent increase from September 1st, the VHI told the Department that "membership losses to our competitor are assumed to occur among the more profitable company paid and payroll deduction schemes".
In its application for a 9.5 per cent increase, the VHI told the Department that medical inflation is running at around 7 per cent per annum.
The VHI complained that a scheme to compensate it because its members are, on average, older than those of BUPA Ireland had not been implemented by the Minister.
Had the scheme been implemented, BUPA Ireland would be paying compensation of £6 million a year to the VHI, according to a VHI estimate.