Health insurer VHI suffered a 48% drop in profits last year to €14.7m last year.
The VHI says claims by customers are running at €10m per week. Chairman Derry Hussey said 'increases in medical costs must, ultimately, be borne by VHI Healthcare members in increased premiums'.
The VHI said it was clear a review of premiums last year would not be sufficient to meet medical costs so 'the board had no option but to provide for this shortfall'. It said this was why the forthcoming 18% hike in prices was needed.
The report also revealed that 70,000 new members had taken out insurance with VHI, bringing its total membership to 1.54 million people.
