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Aviva to increase premiums on 1 March

Aviva - 14% increase on 1 March
Aviva - 14% increase on 1 March

Aviva has confirmed that it will be increasing its health insurance premiums from 1 March.

It follows another significant extra cost imposed on members of its competitor, VHI, three weeks ago.

Aviva is to implement a 14% increase on 1 March. It means, for example, for a person on its most popular plan, the cost will go from €825 a year to €941 a year - an increase of €116.

Families of two adults and two children will typically see their bill rise by €356 a year to €2,900.

Aviva Chief Executive Jim Dowdall has defended the price increase.

Speaking on RTÉ's News at One, Mr Dowdall said today's announcement reflected increases in the cost of public beds in private hospitals and in the cost of the health insurance levy.

He said Aviva's increases followed a review of its position and had been delayed for as long as possible.

It remains Aviva's view that should the health insurance levy be removed, it would be able to reduce its prices by up to 30% overnight.

Earlier this month, VHI increased the cost of its policies by 15% and up to 45% in some cases.

Quinn Healthcare also implemented increases on 1 January with premiums rising by 8%, and some policies seeing increases of up to 25%.

In a separate development, the Health Insurance Authority is currently reviewing changes made by the VHI to its popular Parents-Kids scheme.

Under these changes, there will be reduced cover for certain treatments carried out in private hospitals from next month.

The HIA, which regulates the private health insurance market, says that if the VHI is found to be in breach of legislation, it will be taking the matter further.