The State-owned insurer, Vhi, is implementing its second price increase this year, resulting in a €400 rise in the cost of typical family plans upon renewal. The average premium rates for Vhi plans will increase by 7% starting in October, a substantial rate hike. This follows a 4.8% increase in March, which raised the annual cost of a typical family plan by €250. When combined, these two increases will result in a nearly 12% spike in the cost of the same plan, with some plans experiencing a cumulative 14% increase.
Dermot Goode, a broker at TotalHealthCover.ie, stated that these two increases will lead to a €400 rise in the cost of plans for a family of two adults and two children. Moreover, Healthplus Extra, a plan often chosen by older individuals, will see an increase of €400 per adult, potentially resulting in an €800 rise in premium costs for elderly couples. Goode expressed surprise at the extent of the rise, predicting that many people will need to reconsider their coverage due to affordability issues.
Customers should anticipate double-digit premium increases when renewing their plans, as this has not occurred in the past two years, according to Goode. Vhi attributed the hikes to a significant increase in the demand for health insurance-funded procedures following Covid-related disruptions and healthcare inflation. However, Vhi emphasized that these price rises represent the first increases in two years, as they decreased prices by 3% last year and refunded €450 million to policyholders between 2020 and 2022. Aaron Keogh, the managing director of Vhi Insurance, justified the necessity of the price increase to continue meeting the healthcare needs of members.
Laya, the second largest health insurer in Ireland, will also implement two premium rate increases. These increases, totaling 7.8% on average, consist of a 3% average rise beginning in October, in addition to a previous 4.4% average increase earlier this year. Some plans will face increases exceeding the average, reaching up to 16%. Irish Life Health is also expected to raise premium rates, resulting in cumulative increases of up to 14%.
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