Health insurance company Vhi is to increase premiums by an average of 4.8% across its health insurance plans from March 1.
Vhi said the price hike is due to the increased demand for healthcare and the rising costs of providing healthcare to its customers.
This will be Vhi's first price increase in two years and follows a price reduction last year and the return of €450m in premium waivers to customers over the past three years.
Vhi said the cost of healthcare needs has increased significantly in the last 12 months as demand for healthcare services returns to pre-pandemic levels.
It said the increases are also due to pent-up demand for healthcare services as a result of periods of reduced access to services over the last two years due to Covid.
It also noted a significant increase in the costs associated with the delivery of healthcare due to increases in wage, energy and other costs, including infection control.
Many of these supply cost pressures are amplified by world events, impacting all sectors and all industries, the insurer said.
Aaron Keogh, the Managing Director of Vhi Insurance, said the company understands its customers are already dealing with the pressure of rising costs across the economy, adding that it has made every effort to keep the price increase as low as possible.
"However, because of these cost pressures, the price increase is necessary", he said.
"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," he added.
Vhi has over 1,150,000 customers here.
Dermot Goode of Total Health Cover, part of the Lockton Group, told RTÉ's Drivetime that today's move by VHI could increase costs for a family of two adults and two children by €60 to €270 on average, depending on the plan.
He added that it was not a surprise, as it comes down to increasing claims, deferred medical treatments during Covid, labour costs, as well as new technologies and drugs which are increasing across the board.
Mr Goode said he is expecting Laya to announce something similar.
He added that medical inflation is running close to 8%, so you cannot now rule out more increases.
For private healthcare customers, he suggested shopping around.
