Vhi announces 2.75% health insurance price increase from October

Customers will begin paying the increased health insurance rate from October 1.

Vhi has announced an average 2.75% increase in the price of its health insurance plans, which will come into effect from October 1.

The insurer said the increase is necessary because demand for healthcare services and the cost of providing care continue to rise.

So far this year, the company has seen private hospital claims costs rise by more than 9%, while day-to-day healthcare claims costs, including GP, physiotherapy and consultant visits, have increased by approximately 14%.

Vhi said the rise in private hospital costs is also driven by an increase in claim volumes of over 5% compared with 2025, reflecting continued growth in the number of members accessing healthcare services.

Demand for high-cost healthcare services, including cancer, cardiac and orthopaedic care, has also increased, with the number of members accessing these services rising by nearly 9% compared with the same period last year.

Claims costs for these treatments also increased.

Plans facing biggest increases

Plans that will see the largest rise in monthly costs include the AdvancedCare Day to Day plan, which will increase by €23.58 for two adults and two children; the EnhancedCare 250 plan, which will increase by €14.64 for two adults and two children; and the PMI 35 13 plan, which will increase by €13.63 for two adults and two children.

Managing director of Vhi Insurance DAC, Aaron Keogh, said the organisation continues to see “strong demand for healthcare services across hospitals and everyday healthcare services such as GP and consultant visits and physiotherapy”.

“While increased utilisation and healthcare costs continue to place upward pressure on claims cost, it also demonstrates the significant care and value our members receive from their cover,” said Mr Keogh.

“We recognise that health insurance is a significant financial commitment for individuals and families.

“Vhi exists solely for the benefit of our members, and in 2025, Vhi paid out €1.84bn on members healthcare claims.

“Any surplus made by Vhi is reinvested to improve member services, enhance benefits, expand access to care, and support the delivery of better healthcare,” he added.

“This enables us to continue investing in the healthcare supports and services that matter most to our members."

Director of Health Insurance Ireland, Dermot Goode said consumers need to be “very careful with the average figures quoted by insurers, as some plans could increase by double the average figure or even more”.

“It is understood that some plans could increase by up to 5%,” said Mr Goode.

“Depending on the plan, this latest increase could cost an individual an additional €35 to €65 a year.

“For those on Vhi’s higher plans, the increase could be between €110 and €150 extra per year, and for a typical family, the increase could add approximately €110 to the annual health insurance bill.

“A family on higher plans, such as Advanced Care Extra Day to Day, could see a total increase of close to €260 and for a retired couple on VHI’s top plan, its Premium Care scheme, the increase could add a further €300 to their annual bill.

“This latest increase follows the Laya Healthcare increase announced last week and continues a similar trend of insurers increasing their rates in advance of the peak renewal period,” he added.

“On a positive note, there appears to be less upward pressure on rates, which hopefully means the days of double-digit cumulative increases may be coming to an end.

“As with all insurers, Vhi is attributing these increases to the rising cost of claims.

“Not all of Vhi’s plans are increasing in October, and we can expect further ad-hoc increases between now and the end of the year on many of its corporate plans.

"Consumers should also remember the previous rate hikes earlier in the year, which means the cumulative impact could be closer to 7% or even higher.” 

Mr Goode said the message to all consumers is “never to simply accept these increases without first engaging with their insurer and challenging them to find similar cover that matches their budget”.

“New plans and deals are being introduced all the time which consumers may not be aware of unless they engage with their insurer by phone,” said Mr Goode.

“For anyone worried about the impact of these changes, they should consider seeking expert advice from a qualified adviser who can help them source the best-value cover for their needs”.