Vhi announces average 9% price hike

Health insurer Vhi is to increase its prices by an average of 9%, it announced today.

The company said the sole purpose for the price hikes, which range from 6% to 12% depending on the individual plans, is to cover customer healthcare costs.

For most plans the price increase will be effective from March 1.

“The sole purpose of the price increase is to cover our customers’ healthcare costs in the coming year," said Vhi Chief Executive Declan Moran.

Mr Moran said the two key factors contributing to the increase were an increased demand for healthcare and the fact that the company's private health insurance business was currently loss-making.

Customers on One + plans will see a price increase of 6% for 2012, with effect from March 17, while the popular Parents & Kids plan will increase by 9%.

From March 1, the premium for one adult on HealthPlus Access (formerly Plan B) will increase by 9% . HealthPlus Extra (formerly Plan B Option) will increase by 12.5% from the same date.

"The market has contracted and we need to ensure the organisation is sustainable," he said.

"We are acutely aware of the enormous financial pressures facing our customers and have endeavoured to keep the price increases on our plans as low as possible," Mr Moran added.

"Today’s price increase is the lowest possible amount we could introduce to ensure we can meet the cost of our customers’ healthcare needs in 2012."

The company said it would not be passing on the recently announced increase in the private health insurance levy to its customers.