Vol. 398 No. 1
24 Mr. Yates asked the Minister for Health if VHI premia are to be increased this year; if so, the rate of increase; if there will be any changes in the benefits available to members; and when a decision will be made in this regard.
Deputies will be aware that, as part of their recovery programme, the VHI Board reached agreement with public and private hospitals on an 18 month freeze on cost increases. This expires at the end of June 1990, and some increase in VHI's claim costs will then be inevitable.
The VHI Board have applied for a modest premium increase. This is being considered in the context of the latest information on VHI's financial position and the expected trend in claims costs. An announcement on the amount and timing of any increase will be made at the appropriate time.
I have not been asked to approve any changes in the benefits available to members. Deputies will, however, be aware that the VHI Board are at present in negotiation with the medical profession with a view to providing full indemnity for professional fees which would, of course, be of significant benefit to members.
Will the Minister confirm that the board of the VHI have submitted to him and the Government a request for a fee increase on average between the plans of 4 per cent? Will he inform the House whether he intends to grant this increase? If so, when?
As I told the Deputy, the VHI Board have applied for a modest premium increase which is being considered in the context of the VHI's financial position. As the Deputy is aware, their accounting year runs to the end of February; we are looking at their financial position and an announcement will be made soon.
Will the Minister accept that in recent times there has been a major curtailment of benefits to members of the VHI? There have been very savage increases and it would be very difficult for members to face a further increase in 1990. Will the Minister give a commitment to the House that there will not be an increase this year?
I will give a commitment that we will study the situation very carefully to ensure that what happened to the Voluntary Health Insurance board three or four years ago will not happen again because my predecessor refused to give them any increase when they needed one to maintain their responsibilities to subscribers.
The Minister wiped £30 million off reserves——
If I am to dispose of Question No. 25 it must be put now.
