Families face €300 hike in VHI corporate plan

Some families will have to pay up to €300 more for private health insurance as a result of VHI’s decision to increase a number of its corporate plans from next month.

VHI Healthcare will increase 10 of its 37 corporate plans by between 5% and 11.2% — an average of 6.4%, from April 15.

Corporate price plans are available to all consumers, but are designed for companies providing insurance cover for their employees.

The state-owned insurer announced on March 1 it would increase premiums on most of its plans by between 2% and 7% on adult premiums.

However, it said it would continue to offer reduced rates for children.

From next month it will cost a family of two adults and two children a total of €3,244.64 for private medical insurance, plan 2612, up from €2,926.66. The price difference of €317.98 represents an increase of around 11%.

VHI also increased its teachers’ and nurses’ plans earlier this month, with adult premiums for both increasing from €1,109.38 to €1,174.75.

Child insurance rose from €136.87 to 287.50 for the teachers’ plan while children under the nurses’ plan increased from €136.87 to €143.75.

A VHI Healthcare spokesperson said the corporate plan price increase would impact on a small percentage of the insurer’s overall customer base.

“The price increase is necessary to cover the costs of providing the customers on these plans with access to quality healthcare and is driven by a number of factors including the increasing volume and cost of claims, an ageing membership and ongoing medical innovations which, while welcome, have an impact on the cost of care,” she said.

Dermot Goode of Healthinsurancesaving.ie said insurance companies had corporate plans that were very good value for money but it was difficult to find out about them.

“It’s a mine field for consumers,” he said.

“Corporate plans also tend to be cheaper than other plans but insurers tend to try and keep them under the table because they want to be able to offer their corporate clients something extra.

“But the law is very clear. Once a plan is on the market, it doesn’t matter who it is targeted at, or who it is designed for. Anyone can buy it.”

During 2013, some 47,000 people dropped their health insurance.