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28th May 2010

28/05 The Front Pages

Can we expect higher premium rates for private health insurance? The jury is still out following the news that the VHI will be sold.

JOE

The Front Pages

So the government have decided to put the VHI on the market. The news broke yesterday of Taoiseach Brian Cowen’s and Minister for Health Mary Harney’s decision to toss the state-owned insurance company up to the highest bidder but customers in the Republic have been left perplexed. Today’s contrasting front page reports do not help the situation either.

In other front page news a common sense decision has been made by government regarding signing on for social welfare. Here’s how some of the main headlines read:

‘VHI to be privatised in shake-up of health insurance’ – The Irish Times.

‘Premiums to rise as VHI is put up for sale’ – The Irish Independent.

‘Social welfare claimants to sign on via text’ – The Irish Examiner.

We’re all clear that the VHI will go on the market and that government want fair play for all customers. Equal product, equal treatment, regardless of age is the plan.

The pressing and worrying issues are the hiking up of premiums and the potential loss of 900 jobs in the government’s reform of how health insurance companies do business.

The Indo claims that “steeper premium rises are likely to be imposed on its 1.2 million members as the VHI comes under pressure to build up its reserves in readiness for its sale.”

In contrast, The Irish Times reports that “the reforms would not increase premium costs for the Republic’s two million private health insurance subscribers”. That suggestion comes from Ms Harney’s quarters and may have to be taken with a pinch of salt for now.

Workers at VHI last night feared for 900 jobs after Mr Cowen’s announcement yesterday and although this latest development is good news for the elderly, who are given a guarantee of lower premiums, there may be severe consequences for the younger generations.

Meanwhile, the government is taking steps to implement a text service for social welfare recipients to sign on.

The Irish Examiner’s report reminds us that the government made it a necessity to produce photo ID when signing on at offices around the country just one year ago.

Opposition party Fine Gael has claimed that the move will leave the system wide open to fraud and could even lead to claiming while out of the country.

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