Hibernian hikes cost of health care to cover levy
THERE was more pre-Christmas bad news yesterday after it was announced that 200,000 Hibernian private health insurance customers would be paying extra from the middle of next month.
It will mean an average family of two adults and three children will face hikes of over €380 a year, it emerged.
Hibernian Health became the third insurer to impose cost increases although it insisted it was not a price hike. VHI has already announced an average 23pc hike and Quinn healthcare an average 16pc increase from January.
Hibernian, which had its most recent increase last October, is passing on the €160 levy for adults and €53 levy per child to customers. It must pay the levy to the Exchequer from next month in order to fund the €300m extra tax reliefs the government is allowing for the over-50s.
When tax is taken into account it will mean adults will be paying an extra €128 and children €42.40 from January 18. The 'We Plan Level 2', currently at €589, will now rise to €717 for a single adult.
A family of two adults, two children and a student will see their premium rise from €1,799 to €2,182.20 when the same plan comes up for renewal.
Refund
A spokesman for Hibernian said it would set aside the income generated from passing on the levy and refund it if a possible legal challenge to the levy was successful. However, the legislation underpinning the levy has not been published and it is unclear if a legal challenge will be viable.
He said it was part of their "Axe the Levy" campaign.
The tax credits for older subscribers, which are paid directly to health insurers, mean they are only at a loss for younger customers.
Hibernian Health Managing Director Jim Dowdall said: "Since the levy, which was designed without industry consultation, was first announced, we have met with the Department of Health and Children to present our views on why this levy is not the solution to protect community rating.
"This levy significantly reinforces the VHI's market dominance and prevents real competition and consumers are ultimately paying the price of higher health insurance costs in a monopolised market."
Commenting on the Hibernian increase Jimmy Tolan, chief executive of the VHI said: "The claim that the vast majority of the levy collected will be paid to the VHI is incorrect and misleading.
"The measure introduced doesn't favour any one company over the other and treats all health insurers equally.
"VHI Healthcare will pay the levy to the Government on the exact same basis as Hibernian Health."
- Eilish O'Regan Health Correspondent
