Vhi, the nation’s largest private health insurance provider, is set to increase its premiums by an average of 7% effective March 1.
The company said the price increase was necessary to meet members’ healthcare needs as claim volumes rose by more than 20% last year and inflation had a significant impact on the cost of providing healthcare.
He noted that the increasing demand for healthcare coupled with rising levels of inflation is impacting healthcare systems around the world as healthcare facilities fully reopen after the Covid pandemic.
Vhi raised its prices twice last year — in March and then again in October. The company had reduced prices by 3% in 2022.
Aaron Keogh, Managing Director of Vhi Insurance, said that 2023 was an exceptional year, marked by accelerated growth in the volume of healthcare claims mainly caused by Covid-related issues.
This was leading to an unprecedented increase in healthcare claims costs and an increase in claims volume in 2023 by more than 20% compared to 2022.
“This unprecedented demand for healthcare from our members has resulted in a rapid increase in the volume of claims and associated costs. We are taking the difficult steps required to address this issue,” Mr Keogh said.
“We have implemented a wide range of value and efficiency measures within the company as part of these efforts, however, the scale of the increase in healthcare services our members receive means that this price increase is necessary,” he said.
“We recognize the financial pressures facing many of our members and are committed to delivering value by giving them access to high-quality healthcare at the lowest possible prices,” he added.
Dermot Goode of Lockton, the parent company of Totalhealthcover.ie, said this latest price rise from Vhi would add €105 per adult for those insured on the Enhanced Care 350 scheme or between €230 and €315 per adult for those insured on the Enhanced Care 350 scheme. Health Plus additional and premium care plans.
“For a retired couple subscribed to dated plans such as Health Plus Extra (old Plan B options), the increase since March 2023 will cost them just under 900 euros. For the same couple insured in the Premium Care scheme, they will have to find and state an additional 1,386 euros if They wanted to stay on the same plan.
He also said that a typical family of two adults and two children would be seriously affected by these increases.
“For those families insured on the likes of the One Plus Plan or Enhanced Care 350, the total increase since March 2023 will be €504 and €440 respectively. The popular Company Plan Plus Level 1.3 will increase by €586 or 18%,” he added.
Mr Goode advised all those who renewed on or after March 1 to urgently review their options with Vhi. He added: “The best advice is to determine your budget for health coverage for your family and then challenge the insurance companies to find you similar coverage that suits this. Automatic renewal without checking our alternative options should be avoided at all costs.”
Vhi’s latest increase comes on the back of the 4.8% average reported by Irish Life Health as of January 1, he said. Laya and Vhi also increased the cost of about 26 of their corporate plans from the same date.
“This cycle of multiple price hikes looks set to continue in 2024 as insurers appear unable to predict with any certainty the cost of future claims. If we look at the 2023 trend, Laya has increased its rates from April 2023 after it VHI increased its fees and added: “We expect something similar in 2024.”