Health insurer Vhi confirms it's to increase premiums by 7%

One the country's largest health insurers Vhi has announced it will increase the price of its health insurance plans by an average of 7% from the beginning of March.

The company, which has around 1.2 million customers in Ireland, says the price increase, which takes effect from March 1, is necessary to meet the healthcare needs of its members as claims volumes increased by more than 20% in 2023.

Inflation has also had a significant impact on the cost of delivering healthcare and increased demand for healthcare combined with high levels of inflation are impacting healthcare systems around the world as healthcare facilities reopen fully post Covid. 

In 2023, Vhi members accessed significantly more healthcare services than in previous years which were dominated by restricted access because of the Covid pandemic.  

Commenting on this Tuesday's announcement Aaron Keogh, managing director of Vhi Insurance DAC said: “2023 has been an extraordinary year marked by an accelerated growth in healthcare claims volumes stemming mainly from Covid related issues. This is driving an unprecedented increase in healthcare claims costs. Claim volumes in 2023 increased by more than 20% compared to 2022.”

He continued: “This unprecedented demand for healthcare from our members has led to a rapid increase in claims volumes and associated costs. We are taking the difficult steps required to address this matter. We have implemented a broad range of value and efficiency measures within the business as part of these efforts, however, the scale of the increase in healthcare services accessed by our members means that this price increase is necessary. We are conscious of 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.”

In a statement, issued following the Vhi announcement, the Health Insurance Authority (HIA) confirmed it has been notified.

"The HIA has been informed of an increase in price plans by VHI Healthcare with effect from March 1, 2024. The HIA is notified of price and policy changes in advance of the insurer making any such changes. The insurers are obliged to give 30 days’ notice to the HIA of any such changes."

The statement added that due to medical inflation and an increase in claims volume since the Covid-19 pandemic, insurers have effected a number of price increases. This trend, it says, is consistent with an emerging global pattern post-Covid.

Ray Dolan, CEO of the HIA, said: "We always encourage consumers to review their policy each year at their renewal date to ensure that their policy fits their health needs and budget. Consumers can use the free comparison tool on our website, hia.ie, to find the best policy for their needs."