Vhi Healthcare announced the increase yesterday and said rates will rise by up to 5%. The increase is to come into effect in the coming weeks. It will be the second in as many years.
While the rising costs vary from 1% to 5% across the different healthcare plans, Vhi said the average price rise will be 2%.
Health insurance analyst Dermot Goode said while the increase is bad news for consumers, it is somewhat overdue.
“This was pretty much expected and it doesn’t really come as a surprise,” he said.
The prices will increase from November 1 and are expected to affect hundreds of thousands of Vhi consumers.
After that date, the One Plan Family rate for two adults and two children will increase by about €105 a year, from €2,603 to €2,708.
The HealthPlus Access range, which is the one most popular with older people, will rise about €38.38 a year, from €1,819.75 to €1,858.13.
Some of the company’s most popular plans, from the One Plan range, will see an increase of approximately €32.57 a year, from €1,006.25 to €1,038.82.
The One Plan Starter range, which is popular with young adults, will see a rise of around €9 a year, from €530 to €539.
Declan Moran, director of marketing and business development at Vhi, called the hike a “modest” one.
“Vhi remains committed to keeping prices as low as possible. Today’s modest price increase is the first in 20 months and is necessary to cover the rising costs of our customer’s claims,” he said.
The last time Vhi raised its prices was in March last year.
Costs rose by an average of 3% while the cost of a small number of plans increased by 6%.