Decision time on health insurance as premiums set to go up tomorrow

Hard-pressed families have just hours left to decide on whether they must switch or cancel their health insurance coverage, as premiums for all three insurers are set to rise from tomorrow.

Under previously announced plans, VHI, Quinn Healthcare, and Aviva Health Insurance will, starting from tomorrow and over the coming days, impose a string of price hikes on customers.

All three firms have said the moves are an attempt to cover their financial shortfalls.

However, consumer bodies have warned such moves run the risk of forcing more people to quit their cover because they can no longer afford the cost.

From tomorrow, VHI customers will see their premiums increase by an average of 6% to 12.5%.

In the first days of March, Quinn Healthcare is to raise costs by 6.5% for corporate and consumer policies.

Aviva, which this month hiked consumer plan rates by 15%, is due to impose a similar increase for their corporate deals from early next month.

As a result of the latest hikes, which follow repeated increases across all firms throughout the recession years, Dermot Goode of healthinsurancesavings.ie said there was likely to be another surge in people quitting their coverage.

Last year, a 65,000 people decided to cancel their health insurance protection, double the 2010 rate, which means that one in four people quit their coverage last year compared to one in 100 at the height of the boom in 2007.

While Mr Goode has previously warned that as many as 100,000 people could leave the market this year, he has urged customers to look around for deals still available.

Among the deals currently available, which could save people up to €500 per year depending on the coverage being sought, is VHI’s plan to cover children under the age of 18 for free on its One Plus plan up to Mar 16.

Quinn Healthcare has also announced free child and student plans, which can be availed of up to Mar 19, saving a family of two adults and two children €460 under its Essential Select plan.

In addition, Aviva Health Insurance launched a near- identical plan yesterday until Mar 16.

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