The Voluntary Health Insurance group is expected to be given the go-ahead today by the Government to increase fees by 9 per cent from September.
The likely rise has brought about a dispute between the VHI and the British insurers, BUPA. BUPA Ireland claims that with the increase, VHI will be 22 per cent dearer on certain products. However, the VHI says prices and products are not comparable.
The VHI acting chief executive, Mr Oliver Tattan, said the products could not be compared as the VHI had far wider services and a greater choice of hospitals and consultants. It also offered cover for psychiatric services in some hospitals.
He said BUPA's price increases came at a different time of year - BUPA last increased its rates in February - so prices were not comparable until next February when BUPA was likely to make another increase.
Mr Tattan claimed BUPA was cherry-picking low-risk customers such as young people. He said the VHI had older customers who had been paying their premiums for the past 30 years and were now claiming. BUPA did not have a reserve for the years ahead for older people.
A spokeswoman for BUPA said yesterday that if the VHI increase went ahead, it would be 22 per cent more expensive. She said a family of two adults and two children on the VHI Plan B option would be paying £172 more than on BUPA's Essential Plus scheme.
Another example was on the student plan, which is £101 with BUPA and £144 on the VHI. BUPA stated that its attitude to healthcare was more inclusive, covering alternative therapies, counselling services and more outpatient expense.
The spokeswoman said BUPA prices would be held for the rest of the year. She would make no comment when asked about any increase next year.
Both VHI and BUPA increased their prices last year by 9 per cent. BUPA further increased its fees by 8.8 per cent last February. The VHI application for the increase was based on what it stated was an increased demand for medical care.
Under the legislation, when the price increase is applied for, the Minister for Health has 30 days in which he can reject it. Today is the 30th day and the VHI is expected to make an announcement at the weekend. No previous application has been rejected.