VHI to raise prices on all policies by 3% blaming increases in claims and costs

Health insurer said costs in private hospitals have increased along with day-to-day care.

VHI said there was a 12.5% increase in private hospital claims costs compared to 2023. 

Ireland's largest heath insurer VHI said it will raise prices on its premiums by 3% on all policies from March 1.

The company said adjustment is necessary due to the sustained rise in the number of people accessing healthcare and the costs of delivering this. 

In a statement, VHI said there was a 12.5% increase in private hospital claims costs compared to 2023. 

It is the third price increase from VHI in the past year. Last March they rose prices by 7% after claims rose 20% due to a backlog of procedures put off due to covid. In October prices were raised by a further 3.5%.

VHI has 1.2m health insurance members with a further 480,000 customers with travel, dental and life assurance policies. In 2023, its health insurance business took in €1.68bn in premiums paying out the same in claims resulting in a deficit of €43.4m.

"We understand that our members are experiencing cost of living pressures, and we have made every effort to keep the price increase as low as possible without compromising on benefits or increasing excesses," Aaron Keogh, Managing Director, of Vhi Insurance said.

The Health Insurance Authority (HIA) which regulates the sector said they had been notified of the VHI's planned increase.

"Overall, the price of health insurance policies in Ireland increased by 11% on average in the first three quarters of 2024, and we are aware that many consumers are facing price increases when they renew this year," the HIA said in a statement.

They said the price increase will only come into effect for VHI p[olicyholders when they renew after March 1.