Health insurers embroiled in war of words on pricing

A war of words has broken out between rival health insurers after the VHI announced plans to slash prices for children as part of a revamp of its policies aimed at attracting young families.

There is fierce competition between insurers as they fight to attract and hold on to cash-strapped customers struggling to pay health insurance premiums during the recession.

It is the second VHI cut in fees for children on its various Plan B policies since the beginning of the year and brings the full reduction to €140.

The new children’s rates will be €180 for Plan B and Plan B Option and €175 for those with Plan B Excess.

A family of two adults and three children who were paying a premium of €2,556 on Plan B in January will see their bill fall by €360 from September.

Chief executive of the VHI, Jimmy Tolan, said they had developed the plans following feedback from customer groups.

However, Hibernian Aviva Health insurers have dismissed the move as ‘window dressing’, saying a family on VHI Plan B Option is still €415 worse off compared to its own comparable Level 2 hospital plan.

“What the VHI has done is reduce the price for children.

“However, a child is not going to go out and buy health insurance on its own, so a reduction of just €20 per annum for a child under 18 is meaningless when set in the context of the already high cost of VHI’s plans and the 23% rise in premiums applied since the beginning of the year,” a spokesman said.

Donal Clancy, general manager of Quinn Healthcare, said despite the VHI changes it continues to offer the best value health insurance on the market.

“For example, two adults and two children switching to Quinn can save over €380, as well as availing of comprehensive benefits,” he said.

He claimed the company had also seen an increase in members switching to Quinn healthcare from other insurers to “avail of the best rates possible and make savings.

“Quinn-healthcare are very aware of the financial difficulties our members face. With this in mind ensure we can continue to offer our members competitive rates and flexible payment options,” he said.

“A family with VHI can save over €530 by switching to Quinn healthcare,” he added.

Article courtesy of the Evening Echo newspaper.