MINISTER FOR Health James Reilly has reacted angrily to the imposition of fees on VHI customers who cancel their private health insurance cover midway through the year.
Dr Reilly said the State’s largest private health insurance provider should concentrate on reducing its cost base instead of “penalising” customers who chose to move to a different company.
Since May 1st, the VHI has been charging a €50 cancellation fee to those who switch insurers midway through 12-month contracts. “I’m very concerned about this. I mean, we all know that the fact that VHI is so dominant in the market is creating problems for us and this does nothing to address this,” Dr Reilly said.
“I would much prefer that the VHI address its cost base rather than penalising customers who chose to move.”
Speaking after addressing a conference in Dublin, Dr Reilly said he would look into the matter.
He acknowledged some good work had been done in recent years on reducing the cost base. He praised the outgoing chief executive, Jimmy Tolan, for his work in that regard.
The VHI is also insisting on reclaiming from former customers part of the annual Government levy it had paid on their behalf. The VHI has said the cancellation fee is not imposed in all situations.
The company’s director of marketing and business development Declan Moran said most people understood contracts should not be breached. Similar types of cancellation policies applied to mobile phone customers, he added.
