Older people to face €300 hike as Vhi ups prices
Vhi Healthcare announced it is to increase premiums across its plans by an average of 3% but some plans will be increasing 6%
However, the price hike, plus changes to tax relief announced in the October budget, will result in a price increase of €295.50 for HealthPlus Access, formerly Plan B, the plan most preferred by older people.
The increase will be applied to most plans by Mar 1 but will not apply to those whose policies are due before then.
Since Jan 1, all private patients are being charged for occupying a bed in public hospitals.
Vhi Healthcare chief executive, John O’Dwyer said they were aware that their customers were under enormous financial pressure and had tried to keep the price increase as low as possible.
“We are managing to do this by focusing on the execution of a cost management programme which has resulted in a 3% overall reduction in the cost of claims in 2013” he said.
However, the State-owned insurer is having to factor in additional costs resulting from the charging of private patients for occupying beds in public hospitals and Mr O’Dwyer said the full impact of that was uncertain.
Dermot Goode of Healthinsurancesavings.ie said that while some of the low cost mid-level plans would increase €50 for a family, some of the old reliables would be increasing by about €250 for a family of two adults and two children.
Laya Healthcare has said its pricing levels were under review, while Aviva and GloHealth have already increased premiums.
More prices hikes are likely as health insurers have warned that they will have no choice but to pass on the health insurance levy when it kicks in on Mar 1.
Mr Goode said it was not surprising that insurers were increasing their rates again given the numbers that continue to exit the market.
He has predicted the number of people with private health insurance would fall below two million during the first half of this year.
“While the level of increase of VHI’s premiums is below market expectations, it will still come as a financial sting to those who hold policies with the insurer.”
Mr Goode said many of the big nurse and teacher group schemes due to be renewed in March would be first hit by the increases.
Mr Goode said the only upside for consumers was that there was a range of offers now available from the various providers and more were coming onstream.
* One Plan Starter (very popular with young adults)
Annual premium for one adult pre-Mar 1, 2014 — €536.25.
Annual premium from Mar 1, 2014 — €547.00.
Both premiums are calculated after tax relief has been deducted, so the increase is €10.75, or 21c per week.
* One Plan Family
This plan has been on promotion from Dec 28 and finishes at the end of next month with an annual premium of €2,274.50 for two adults and two children.
Before the promotion, the annual premium for two adults and two & children was €2,536.50.
A new promotion will run during March and April with a 50% discount on child rates, resulting in an annual premium of €2,335 for two adults and two children. The annual premium for two adults and two & children after March and the promotional offer, will be €2,603.
Price difference before and after the latest offer is €66.50 (€9.04 relates to the change to the tax relief at source), or €1.28 per week.
* HealthPlus Access (formerly Plan B and favoured by older people)
Annual premium for one adult to increase from €1,524.25.to €1,819.75 after Mar 1, a €295.50 increase.
The price difference includes the insurer’s price increase of €91.55 plus €203.95 resulting from the change to tax relief at source, or €5.68 per week.
