Employers' group IBEC today said that the "excessive" increase in VHI premiums will be an additional burden on businesses and households, and is "reflective of the unsustainably high cost structure of the Irish health care system".
"The substantial planned increase in VHI premiums will be a major cost blow for employers, which are already facing a number of cost increasing measures in Budget 2011, " IBEC director general Danny McCoy said.
"Many employers either partly or fully pay for health insurance on behalf of their employees.
"This increase is in huge contrast to the pricing environment facing other companies in competitive markets, which have had to slash prices, or at best hold them stable, in an effort to retain customers.
"This cost increase will also be a very painful blow for consumers, who are already facing reductions in their take-home pay this month," Mr McCoy added.
"More broadly, this increase is a reflection of the unsustainably high cost base of Irish health care.
"Just one example, highlighted by the National Competitiveness Council, is that Irish medical consultants are the highest paid in the OECD, earning almost double the salaries in countries such as Finland and Norway," concluded Mr McCoy.