VHI has announced an average price increase of 3.5 per cent across its health insurance plans from October 1st.
They have said this is down to the sustained increase in both the volume and costs of healthcare claims.
Ireland’s largest health insurance provider announced average price increases of 7 per cent in January
In the first half of the year, Vhi saw a 14 per cent increase in private hospital claim costs when compared to 2023.
VHI have also announced they are reducing the cost of children’s premiums on selected plans by 25 per cent from October 1st.
Day to day benefits have been added to some plans that previously didn’t have this benefit.
Aaron Keogh, Managing Director, Vhi Insurance DAC said: “We have taken the decision to introduce a price increase from October 1st as premium income has not kept pace with healthcare demand and associated claims costs. We have to price prudently for the future so that we remain in a position to meet the healthcare needs of our members.
"We understand the affordability challenges that many people are facing and the importance that is placed on retaining health insurance and we are determined to continue to deliver value for money.
“Vhi reported financial losses in 2023 reflecting the challenging environment within which we are operating. 2023 and 2024 have seen accelerated growth in healthcare claims volumes and as a result unprecedented increases in healthcare claims costs.
"This is because our members are accessing more healthcare than ever before in a variety of settings.”
Speaking on the announcement, the Health Insurance Authority said: "While we are aware that these price increases may have an impact on some consumers, the health insurance market in Ireland is an open market, and insurance providers can make price changes as they see fit.
"These prices are based on the cost of the claims that the insurers receive. There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims.
"According to our latest Annual Market Report, the total level of claims paid by insurers in 2023 rose by 15 per cent on the previous year, and there was a slight increase in claims for private hospitals."
