The country’s largest private health insurer will increase premiums by 7% from October 1, reports RTE.
Vihi, which has 1.2 million customers, said the decision was driven by a significant increase in demand for healthcare after years of Covid-related disruption, along with high levels of healthcare inflation in Ireland and abroad.
This is the company’s second price hike this year. Price premiums also increased by an average of 4.8% in March
Last year the company cut prices by 3%.
“We are conscious of the financial pressures that many of our members are facing, however, the price increase is necessary to ensure that we continue to meet members’ healthcare needs,” said Aaron Keogh, Managing Director of Vhi Insurance, reports RTE.
“The pandemic brought significant impacts on healthcare delivery in Ireland but we have seen a strong recovery in the number of members accessing necessary healthcare treatments in all parts of the healthcare system through 2023,” reports RTE.
“As well as a sustained rise in the volume of claims, there have been significant increases in the costs associated with the delivery of healthcare due to upward pressure on wages, energy and other costs,” Mr Keogh said, reports RTE.
“This price increase is necessary to ensure that we continue to meet the healthcare needs of our customers, giving them access to new and innovative drugs, procedures, technologies and services as required to meet their medical needs now and into the future,” he added, reports RTE.
The insurer must notify the health insurance company of the price and policy changes before making such changes. Insurers must provide HIA with 30 days’ notice.
This morning, HIA said it has received notification from Vhi Healthcare of upcoming premium price hikes, which will come into effect in October
“The private health insurance market in Ireland gives discretion to health insurers to set the prices for their policies. These prices are ultimately based on the cost of the claims that the insurers receive. If the number of claims or the cost of healthcare increases, prices can also increase,” the HIA said in a statement, reports RTE.
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