Vhi to increase prices by average of 3% from 1 October
Vhi, the country’s largest health insurer, is to increase the prices of its policies by an average of 3% from October.
It is estimated the increase will mean an individual will pay between €15 and €80 extra per year for their health insurance, while a family plan could go up by around €180.
Consumers will be informed of any changes to their plan, including any price or benefit changes, in their renewal letter.
Any policy holders who are mid-contract will not be affected by the higher prices before October.
This is the second price rise this year from Vhi, which has around 1.2 million customers – roughly half of the entire health insurance market.
Earlier this year, in March, its plans also went up by 3%.
Today’s announcement follows similar increases from other health-insurance providers recently. Last week Irish Life Health, which has around 500,000 customers, announced a 3% average rise in the cost of its plans from October.
Laya Healthcare on August 15 also said it was increasing prices by an average of 4.5% for its more than 700,000 customers, with the change also coming into effect in October.
October is the month that traditionally marks the start of the period when over half of health insurance policies are up for renewal.
In recent years, a pattern has emerged whereby all the main health insurers have increased policy prices twice per year – in spring and autumn.
The companies have cited the rising cost of delivering healthcare globally for the rises, particularly in high-tech hospitals.
Commenting on the latest Vhi increase, its Managing Director Aaron Keogh said it 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,” he said.
“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,” he stated.
Dermot Goode from Health Insurance Ireland said consumers “need to be wary of the average figures quoted by health insurers.
“In some cases, the actual increase could be much higher depending on the plan held.
“The cumulative impact of multiple rate hikes since the last renewal could leave members facing total increases of 6% – 10% or even higher depending on the plan in question,” he said.
Mr Goode also advises consumers to “never just accept these increases, i.e., don’t allow our cover to auto-renew.
“At the very least, contact your existing health insurer and challenge them to find you a similar plan at a lower premium.
“Tell them your budget for health cover and have them fully explain the benefit differentials of any alternative plan you may be considering.”
The Health Insurance Authority (HIA) said these price increases “are understandably unwelcome to consumers, particularly during a time of rising living costs, and recent announcements by other insurers regarding price adjustments from October”.
“While insurers are free to set their prices based on commercial factors such as medical inflation and claims costs, affordability must remain a priority,” the HIA said.
The authority said that consumers may be able to find better value by shopping around and thinking about what benefits are most important to you.
“Consumers are free to move to any plan on the market at their renewal date, and we encourage everyone with health insurance to review their policy each year to make sure that they are on the right plan for their current lifestyle and health needs,” the HIA added in a statement.
Article Source – Vhi to increase prices by average of 3% from 1 October