THE country's 1.5 million VHI subscribers are facing a further price hike of up to 8% from September, The Sunday Tribune has confirmed.

The board of the state-owned health insurance company wrote to the Minister for Health, Micheál Martin, on Friday seeking permission to increase its subscription levels.

Under the proposals, members subscribing to the VHI's more expensive 'Options' plans would see premiums rise by around 7%, while the cost of the company's convention plans would increase by around 8%.

The move comes less than a year after the government allowed the VHI to increase its prices by 18%.

Under current legislation Martin has one month to either accept or reject the subscription increase proposals.

VHI subscribers could also face further hikes in the near future if hospital consultants significantly increase their charges to meet soaring insurance costs. Consultants have warned that if insurance bills for their private practice increase significantly, as is likely under new government reforms, then these costs will be passed on to patients.

However, on the other hand VHI stands to gain tens of millions of euro from rival insurers such as BUPA under the terms of a risk equalisation system to be introduced by the government.