VHI becomes the latest health insurer to announce price hike

VHI said the rise was necessary due to the increase in demand for healthcare along with an increase in the cost of delivering that healthcare. Picture: RollingNews.ie

VHI has become the latest health insurer to announce a price hike, amid fears that consumers could be faced with yet more increases in the months to come for their health insurance.

The Health Insurance Authority said on Tuesday it had received notice of VHI’s decision to increase prices by an average of 3% on adult premiums across its plans.

VHI said the rise was necessary due to the increase in demand for healthcare, along with an increase in the cost of delivering that healthcare.

It said the volume of healthcare delivered to members in private hospitals, day hospitals and non-hospital settings has increased by 9% in the last year.

Meanwhile, it said claims costs in private hospitals have increased by 13% compared to last year, while the cost of primary care claims has risen 9%.

It comes after similar recent hike announcements by both Laya and Irish Life as price inflation within health insurance is over five times that of the general inflation within the Irish economy.

“Consumers will be informed of any changes to their plan including any price or benefit changes in their renewal letter,” the regulator said of the VHI increases.

“If you are a VHI customer, these price changes will affect you if you renew your policy on or after 1 October 2025. If you are mid-contract, the cost of your insurance won’t change on 1 October 2025, only at renewal.” 

It also follows a price increase announcement earlier this year from VHI, which saw prices increase by an average of 3% across its plans. This increase took effect from March.

VHI Insurance DAC managing director Aaron Keogh said: “The price increase is necessary as the demand for care and the cost of delivering that care continues to rise. We ensure that our members can continue to access the care that they need and, therefore, have to price accordingly.

“We understand that health insurance is a significant investment for our members, which is why we continue to offer a wide range of plans to help meet their healthcare needs at various pricing points, also keeping our entry level plans as affordable as possible.” 

Mr Keogh said that significant shifts will be needed in how healthcare is delivered in Ireland to meet the demand from its ageing population and a continued increase in the incidence of chronic disease.

He added VHI will continue to invest in and develop services to “manage the challenge of increased demand for healthcare and the increasing costs associated with the delivery of healthcare”.

Giving examples of how premiums cold increase, it said that the “enhanced care 250” plan for two adults and two children will increase from €2,870.52 to €2950.74 a year.

For the “firstcare 500 day-to-day" plan, a single adult would see a premium of €981.64 rise to €1,046.63.