Starting on October 1st, VHI has announced an average 3.5% price increase for all of its health insurance policies, reports Breaking News.
They have said that the reason for this is the ongoing rise in the quantity and expense of medical claims.
The biggest health insurance company in Ireland stated that average premium hikes for January were 7%.
Compared to 2023, Vhi had a 14% rise in the cost of private hospital claims in the first half of the year, reports Breaking News.
Additionally, VHI has stated that as of October 1st, the cost of children’s premiums on some plans would be reduced by 25%.
Certain plans that didn’t previously offer day-to-day benefits now have them.
Aaron Keogh, Managing Director, Vhi Insurance DAC said: “We have taken the decision to introduce a price increase from October 1st as premium income has not kept pace with healthcare demand and associated claims costs. We have to price prudently for the future so that we remain in a position to meet the healthcare needs of our members. We understand the affordability challenges that many people are facing and the importance that is placed on retaining health insurance and we are determined to continue to deliver value for money. Vhi reported financial losses in 2023 reflecting the challenging environment within which we are operating. 2023 and 2024 have seen accelerated growth in healthcare claims volumes and as a result unprecedented increases in healthcare claims costs. This is because our members are accessing more healthcare than ever before in a variety of settings,” reports Breaking News.
Speaking on the announcement, the Health Insurance Authority said: “While we are aware that these price increases may have an impact on some consumers, the health insurance market in Ireland is an open market, and insurance providers can make price changes as they see fit. These prices are based on the cost of the claims that the insurers receive. There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims. According to our latest Annual Market Report, the total level of claims paid by insurers in 2023 rose by 15 per cent on the previous year, and there was a slight increase in claims for private hospitals,” reports Breaking News.
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