VHI to meet Harney over cut in risk equalisation

The VHI is due to meet Minister for Health Mary Harney today to discuss her contentious plan to reduce risk equalisation payments by 20%.

The chief executive of the health insurer sought the meeting yesterday after Ms Harney's decision was made public.

Under risk equalisation, the VHI is entitled to receive millions of euros from its competitors as compensation for its older and more costly client base.

The VHI has already warned that the minister's decision to reduce these payments will lead to higher premiums.

Amicus, the union that represents around 800 VHI workers, has also accused Ms Harney of throwing the future of the health insurance market into doubt.

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