Vhi, the largest health insurer in Ireland, has announced it will raise its policy prices by an average of 3% starting in October, reports RTE.
This increase means individuals could pay between €15 and €80 more annually for health coverage, while family policies could see an increase of around €180, reports RTE.
Customers will receive details about any adjustments to their plans, including pricing and benefits, in their renewal notices.
Those who are currently mid-policy will not be affected by the price increase until after October, reports RTE.
This marks the second time this year that Vhi has raised prices. The insurer, which covers about 1.2 million people—or half of the national health insurance market—also increased rates by 3% back in March.
This announcement comes after similar recent hikes by other providers. Just last week, Irish Life Health, with around 500,000 customers, revealed an average 3% increase in its plan prices, also effective in October, reports RTE.
On August 15, Laya Healthcare said it would raise prices by an average of 4.5% for its 700,000+ members, also from October.
October typically signals the start of the annual renewal season, when more than half of all health insurance policies are up for review, reports RTE.
In recent years, a consistent trend has emerged where all major insurers raise prices twice a year—once in spring, and again in autumn.
These hikes are often attributed to the escalating global cost of healthcare delivery, especially within technologically advanced hospitals.
Responding to the latest increase, Vhi’s Managing Director Aaron Keogh stated the rise is “necessary as the demand for care and the cost of delivering that care continues to rise”, reports RTE.
He added: “We ensure that our members can continue to access the care that they need and, therefore, have to price accordingly.”
“We understand that health insurance is a significant investment for our members, which is why we continue to offer a wide range of plans to help meet their healthcare needs at various pricing points, also keeping our entry level plans as affordable as possible,” he said, reports RTE.
Dermot Goode of Health Insurance Ireland cautioned consumers to be mindful of the averages being publicised by insurers.
“In some cases, the actual increase could be much higher depending on the plan held. The cumulative impact of multiple rate hikes since the last renewal could leave members facing total increases of 6% – 10% or even higher depending on the plan in question,” he said, reports RTE.
Mr Goode also recommended that customers avoid accepting price hikes without questioning them.
“At the very least, contact your existing health insurer and challenge them to find you a similar plan at a lower premium. Tell them your budget for health cover and have them fully explain the benefit differentials of any alternative plan you may be considering,” reports RTE.
The Health Insurance Authority (HIA) acknowledged the rising costs and said these increases are “understandably unwelcome to consumers, particularly during a time of rising living costs, and recent announcements by other insurers regarding price adjustments from October,” reports RTE.
“While insurers are free to set their prices based on commercial factors such as medical inflation and claims costs, affordability must remain a priority,” the authority stated, reports RTE.
The HIA advised consumers to shop around to potentially find better value and assess what plan benefits are most relevant to their current needs.
“Consumers are free to move to any plan on the market at their renewal date, and we encourage everyone with health insurance to review their policy each year to make sure that they are on the right plan for their current lifestyle and health needs,” the HIA added, reports RTE.
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