VHI INSURANCE HAS announced another price increase in premiums, the third in twelve months.

The price hike, which will come into effect 1 March, will raise prices by 3% on average across plans.

According to insurance expert Dermot Goode, the increase could add between €35 and €160 to the annual cost of adult plans, and between €80 to €270 per year for family mid-level plans or higher.

The insurance provider previously raised prices by 3% last October and last March.

In a statement released today, the company said: “This adjustment is necessary to ensure that we continue to meet the healthcare needs of our members.

“The cost of delivering healthcare continues to rise as more people access essential healthcare services and the cost of providing those services increases.”

It put the increases down to a rise in private hospital costs, which it said rose by around 13% last year, and the volume of private hospital claims, which it said rose by around 8% compared to 2024.

“Increasing costs across the healthcare sector both in Ireland and internationally are being driven by factors such as medical inflation, an ageing population, and the introduction of new drugs, technologies, and procedures,” the statement said.

Aaron Keogh, Managing Director at Vhi said: “The rising demand for healthcare and the increasing cost of delivering it mean that we must adjust our pricing accordingly.”

The Health Insurance Authority (HIA) remarked that the price increase is “unwelcome, particularly during a time of rising living costs”.

The HIA, whose role is to ensure consumers are aware of their rights and insurers know their responsibilities in relation to health insurance, added that “affordability must remain a priority”.

It advised consumers to review their cover and “focus on the benefits most important to them”.

HIA Chief Executive Brian Lee advised people to review their health insurance annually, as switching or adjusting plans.

He also encouraged people to shop around, increase their hospital excess if they’re in good health, and reduce cover for benefits that aren’t used.

Elsewhere, Dermot Goode, Health Insurance Expert, said the increase was expected as VHI typically review their rates in March and October each year.

He said customers renewing their cover from March onwards will be facing two increases, this latest increase and the price change from last October.

“For consumers, the message is simple: never renew your cover without first checking with your existing insurer to see if they have a plan that matches your maximum budget,” he said. 

In 2025 all of Ireland’s main health insurance companies increased their prices at least twice, while Irish Life Health raised its prices four times in twelve months.

Speaking to The Journal at the time, Goode said “the old rules are gone out the window” when it comes to premium hikes.

“[Companies] are looking at rates on a month-to-month basis now,” he said.