VHI Healthcare has announced an average price increase of 3 per cent across its health insurance plans effective from the beginning of March.
The State’s largest private health insurer said the hike was “necessary due to the sustained rise in the number of people accessing healthcare and the associated costs of delivering this.”
In a statement it said there had been a 12.5 per cent increase in private hospital claims costs last year compared to 2023.
It also said the cost of delivering services “has also risen, driven by increased costs in private hospitals, associated healthcare professional costs and the increasing costs of day-to-day care.”
The company said the trend was not unique to VHI “and health insurers here and abroad are facing similar challenges.”
The company pointed to the availability of new drugs, technologies and procedures and a said that while they were “contributing to medical inflation [they were] crucial as they save and extend lives.”
The VHI’s managing director Aaron Keogh said he understood customers are “experiencing cost of living pressures, and we have made every effort to keep the price increase as low as possible without compromising on benefits or increasing excesses”.
in response the Health Insurance Authority (HIA) notes the price move and said the cost of health insurance policies in Ireland increased by 11 per cent on average in the first three quarters of 2024 “and we are aware that many consumers are facing price increases when they renew this year“.
The Authority encourages “all consumers to review their plan each year before they renew and to consider switching if their current plan doesn’t fit their health needs or budget in order to promote a competitive and innovative health insurance market that meets the needs of the market“.
- Sign up for push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Listen to our Inside Politics podcast for the best political chat and analysis
