VHI HIKE COULD BE CHALLENGED ON AGE DISCRIMINATION GROUNDS
Issued : Friday 7 January, 2011
Labour Senator Phil Prendergast has called on the Equality Authority to investigate whether VHI’s proposed increase in premiums discriminates against older people. The South Tipperary Senator who is the Labour Party’ spokeswoman on the the Older Person said:
"The Equality Authority should investigate whether VHI is open to legal challenge on age discrimination grounds after its decision to impose massive increases in premiums on schemes which attract older people.
"While most family plans are going up by 15% the Plan B schemes which are most popular with older people will go up by 35-45% from next month.
"Insurance policies cannot by law include additional premium weighting on age grounds but by singling out policies mainly bought by older people VHI is in danger of engaging in indirect and possibly direct discrimination.
"The company’s chief executive has been clear that the cost of serving its large customer base of older people is at the heart of its financial problems and the dispute it has with its competitors and with the Government.
"The suspicion grows that VHI, which is planning to privatise, has made this decision in an attempt to drive older people away from the company thus making it more attractive to potential buyers.
"It is shocking that many customers who have been with VHI for decades are going to pay even more or give up health insurance at a time in their lives when they are most likely to need it.
"The Government’s failure to address the consequence of the Supreme Court ruling on Risk Equalisation in 2008 is part of the problem but its failure to provide adequate health services for older people is a contributory factor.
"Many older people are unnecessarily kept in hospital when they could be treated at home at far less expense. This would reduce the cost of treating older people for insurance companies.
"The Labour Party is finalising its policy on Older People which includes the development of social care networks under the Primary Care Strategy and an increase in Public Health Nurses, who play a key role in sustaining the independence of older people in their homes.
"In the meantime, older people will again have to pay for Government inaction.
