Hibernian Aviva Health has criticised the decision, announced today, by the European Commission for Competition accepting the Irish Government’s proposed health insurance levy.
- Ruling is anti-consumer and anti-competitive
- Ruling preserves anti-competitive state of Irish health insurance market
- Typical family will pay €426 per annum in unnecessary levies
Hibernian Aviva Health has criticised the decision, announced today, by the European Commission for Competition accepting the Irish Government’s proposed health insurance levy. Hibernian Aviva Health believes the implementation of the levy in its current form is unnecessarily forcing higher premiums on health insurance customers and that it is designed only to preserve the market dominance of VHI. If this levy is implemented in its current form it means a family of two adults and two children would pay €426 extra per annum in health insurance levies. This amounts to an increase of approximately 24% on the health insurance premium that a family pays if insured with Hibernian Aviva Health.
Jim Dowdall, managing director of Hibernian Aviva Health, said: “The imposition of the health insurance levy is being misrepresented as protecting older customers – this is not true. The law in Ireland is clear - all health insurers in Ireland must operate on the principle of community rating and charge all customers the same premium irrespective of their age and accept all customers, irrespective of their health status. Community rating is supported by Hibernian Aviva. This levy is, in reality, an unnecessary tax that is designed to subsidise VHI.”
Hibernian Aviva Health notes that two warnings have already been issued to the Irish Government by the European Commission regarding the government’s failure to ensure proper regulation of the VHI in the same manner as all other insurers in the market. In the circumstances it seems inappropriate to introduce levies to support an organisation that is not compliant with European Commission requirements.
Mr Dowdall confirmed: “We have written to the Minister for Health & Children seeking an urgent meeting to ensure that all insurers are regulated properly and obliged to operate to the same consumer protection rules and solvency levels. As Europe’s fastest growing health insurer our commitment is that we will ensure the creation of a competitive market where all health insurance customers benefit from better quality healthcare, better value and lower prices. Hibernian Aviva Health has already stated that it will refund to our customers any levy fees not paid to the Government in the event of a successful challenge to the levy and today reaffirms that commitment.
“In the best interests of over 200,000 Hibernian Aviva Health customers, a figure which is growing rapidly each day, and a competitive market for all health insurance consumers we are seeking ways of challenging this protectionist levy,” concluded Mr Dowdall.
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For further information please contact:
Alan Tyrrell, Hibernian Aviva
Telephone: 01 898 5452 / 086 850 8673
Amy Pilgrim
Telephone: 01 6188 461 / 087 261 3300
E-mail: amy.pilgrim@fleishmaneurope.com
Notes to editors:
About Hibernian Aviva Health
Hibernian Aviva Health is a division of Hibernian Aviva Group, Ireland’s leading insurance company with 1.2 million customers across the general insurance, life and pensions and health insurance sectors. The company is ranked first for general insurance and top three for life and pensions and health insurance.
Hibernian Aviva Group is a subsidiary of Aviva plc. Aviva is one of the world’s largest savings, general insurance and investment groups with the purpose of looking out for customers, employees and stakeholders with prosperity and peace of mind.