The VHI is to increase its rates by 18 per cent from September 1st, 2002. It is the third such recent increse by the VHI group which increased rates by 9 per cent in September of last year, and by 6.25 per cent in February.
The Minister for Health, Mr Micheál Martin said today it would "not be realistic" to veto the proposed increase saying the increase was needed to retain current level of hospital services and to cater for a forecast 20 per cent increase in claims.
Mr Martin said the price hike was also necessary because of advances in technology and costly new treatments.
VHI's main rivals, BUPA said the price differential "would result in VHI being 32 per cent more expensive than BUPA for an average family."
Fine Gael spokeswoman on Health and Children, Ms Olivia Mitchell TD described the increase as "a complete betrayal of Government promises in the run-up to the General Election."
Ms Mitchell said: "It is clear now that the sick and the disabled are to be asked to pay for 5 years of profligate spending and Government mismanagement of the public finances."
She added that the increase would force people off private health care and put further pressure on hospital waiting lists.
The Labour Party spokesperson on health, Ms Liz McManus, said that while the VHI had faced significantly increased costs, the increase in subscription rates could have been kept at a much more modest level, had the Minister used the powers available to him to introduce "risk equalisation."
She said the VHI covers a disproportionate number of elderly patients, who have a greater demand on services saying: "Risk equalisation would enable the burden to be spread more evenly between all insurers, but astonishingly the Minister has failed to use the legislation passed by the Dail to ensure that this is done."