The largest provider of private health insurance in the State is set to increase premiums by 7% from 1 October.
Vhi, which has 1.2 million customers, says the decision was driven by a significant increase in demand for healthcare following years of Covid-related disruption, coupled with high levels of healthcare inflation in Ireland and abroad.
This is the second price increase from the company this year. Back in March price premiums also rose by an average of 4.8%
Last year the company had reduced prices by 3%.
"We are conscious of the financial pressures that many of our members are facing, however, the price increase is necessary to ensure that we continue to meet members' healthcare needs," said Aaron Keogh, Managing Director of Vhi Insurance.
"The pandemic brought significant impacts on healthcare delivery in Ireland but we have seen a strong recovery in the number of members accessing necessary healthcare treatments in all parts of the healthcare system through 2023.
"As well as a sustained rise in the volume of claims, there have been significant increases in the costs associated with the delivery of healthcare due to upward pressure on wages, energy and other costs," Mr Keogh said.
"This price increase is necessary 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.
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The Health Insurance Authority must be notified of price and policy changes in advance of an insurer making any such changes. Insurers are obliged to give 30 days' notice to the HIA.
This morning, the HIA said it received notification from Vhi Healthcare about its impending price increases on premiums to come into effect in October.
"The private health insurance market in Ireland gives discretion to health insurers to set the prices for their policies. These prices are ultimately based on the cost of the claims that the insurers receive. If the number of claims or the cost of healthcare increases, prices can also increase," the HIA said in a statement.
It said due to medical inflation and an increase in claims volume since the Covid-19 pandemic, insurers have effected a number of price increases this year.
"This trend is consistent with an emerging global pattern post-Covid," it said.
The HIA is encouraging customers to review their policy each year at their renewal date to ensure their policy fits their health needs and budget.
A free comparison tool is available on its website, hia.ie.
