The Health Minister says he doesn't believe the price hikes at health insurers Laya Healthcare and Glohealth are justified.

James Reilly says he is very disappointed that both companies have raised their rates by the extent announced this week.

LAYA Healthcare last night announced a 20% hike in its premiums - while GloHealth said its prices will go up by €49 per adult and €14 per child.

James Reilly has criticised the rate increases saying he's "very disappointed" and that he doesn't believe they are justified.

The announcements by LAYA and GloHealth follow an average 3% increase announced by VHI on Wednesday.

The health minister has also praised VHI for keeping its increase to an average of 3%, last year they increased prices by 6%.

Responding to accusations from health insurers that they have been forced to hike their premiums because of the government's move to start charging private patients for the use of public beds, the Minister has insisted the change will raise only €30 million, not the €120 million claimed.

He's now urging all private insurers to work with Pat McLoughlin - who was appointed by the Government to advise insurers how to keep costs low. Among those, a recommendation that the industry steps up its fight against fraud and inappropriate claims, and works to encourage more young people to enter the market. Savings are also thought to be possible in the areas of claims processing, and in admissions and discharge procedures.

Speaking in the Dáil yesterday, Eamon Gilmore expressed surprise that private health insurers are only hiking their prices: