Health insurer VHI to raise prices by 7% on average in latest blow to customers

Health insurer VHI is set to increase premiums by an average of 7 per cent from October 1st.

The company, which is the largest provider of health insurance in the State, has 1.2 million customers.

It said the decision was driven by high levels of healthcare inflation and a significant increase in demand for services following years of Covid-related disruption.

Certain VHI policies will climb by 9 per cent, meaning some people will be paying hundreds of euro more each year for their health insurance.

This is the second price increase from the company this year – in March, VHI premiums also rose by an average of 4.8 per cent.

In a statement, VHI said it had a responsibility to set premiums in a prudent and sustainable manner to ensure it could provide its members with access to excellent healthcare.

Speaking about the increases, Aaron Keogh, managing director of VHI Insurance DAC, said: “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 member’s healthcare needs.

“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.

“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 said the company “exists solely to meet the healthcare needs of our members and all premium income received is used solely for this purpose. Any surplus generated is invested in improving the service experience and healthcare outcomes of our members”.