Vhi Healthcare (Vhi), Ireland’s largest health insurer, has announced that it is to increase prices by an average of 7.0% as of next month.
The state-owned company says the increase is driven by a significant increase in demand for healthcare following years of Covid-related disruption together with high levels of healthcare inflation in Ireland and around the world.
It is the second increase this year, with the first happening in March. Premiums were increased by an average of about 4.8% at that point.
The latest rise means a total price increase of about 12% for the year.
Vhi said it has a responsibility to set premiums in a prudent and sustainable manner to ensure that Vhi can provide its members with access to excellent healthcare and meet those costs.
The March increase was the first by Vhi in two years. It had previously reduced prices by 3% in 2022 and had returned €450m in premium waivers during the pandemic.
In 2022 Vhi delivered over 523,000 healthcare interactions to its members.
“A continuous increase in the numbers of members accessing healthcare as well as sustained increases in the costs associated with the delivery of healthcare are driving the need for a price increase,” VHI said.
Aaron Keogh, managing director at 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 continued: “Vhi 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.”