Vhi to increase prices by 4.8% from March due to rising demand and costs
Vhi claimed that the increase was 'necessary to ensure that Vhi can continue to meet the costs of providing healthcare to its customers in 2023 and beyond'. Picture: Dan Linehan
Over one million customers are facing increased health insurance bills after Vhi confirmed it is hiking its prices.
The country's biggest health insurer is to increase premiums by an average of 4.8% from March 1 in a move that could cost a family of four anything from €60 to €270 in additional payments this year.
It comes just weeks after Irish Life Health increased its policy rates, and has prompted speculation that Laya Healthcare could soon follow suit.
Vhi says the increase is due to the rising demand for healthcare and the rising costs of providing healthcare to customers.
It claimed the increase was “necessary to ensure that Vhi can continue to meet the costs of providing healthcare to its customers in 2023 and beyond”.
Vhi noted demand for healthcare had now returned to pre-pandemic levels, which it said reflected pent-up demand due to reduced access to some services during Covid-19 lockdowns.
On its website, Vhi claims to have over one million customers in Ireland.
Dermot Goode of TotalHealthCover.ie believes that around half of their customers will not immediately be affected by the increase as they will have recently renewed their policy.
He said: “A very quick cursory glance at the figures, this is going to cost a family of two adults and two children anything from €60 to €270 in additional premium for the year.
“There’s value (in shopping around) – the vast majority of renewals will have taken place between December and the end of February. A lot of consumers will miss this increase and it won’t hit them until this time next year.
“To anybody who sees their premium going up, you need to pick up the phone and engage with the insurance companies. If ever there was a reason to shop around, this was it.”
Vhi Insurance managing director Aaron Keogh explained: “We understand that our customers are already dealing with the pressure of rising costs across the economy and we have made every effort to keep the price increase as low as possible.
“However, because of these cost pressures, the price increase is necessary."
“This is to ensure that we continue to meet the healthcare needs of our customers, giving them access to new and innovative drugs, procedures, technologies and services as required to meet their medical needs now and into the future.”
Mr Keogh added any surplus generated by the company is put back in to “improving services and expanding the care we deliver” He said Vhi was committed to ensuring it could innovate how it delivers healthcare in the future.
He concluded: “VHI exists solely to meet the healthcare needs of our customers and all premium income received is dedicated to delivering and meeting the healthcare needs of our customers and patients."
This is the first price increase by Vhi in two years and follows a price reduction in 2022.
There are more than 20 Vhi healthcare facilities across Cork, including clinics in hospitals, out-patient centres and diagnostic centres where cover is provided.
