VHI WILL INCREASE the price of its health insurance plans by an average of 7% from 1 March, the company has announced.
It said the price increase is “necessary” to meet the healthcare needs of its members as claims volumes rose by more than 20% last year and that inflation has had a “significant impact” on the cost of delivering healthcare.
Last year, there was was over 630,000 healthcare interactions with VHI’s health and wellbeing services, including access to VHI doctors, nurses and healthcare professionals. The company said this represents a 21% increase in usage on the previous year.
VHI said the rapid return to full activity in hospitals post-Covid, combined with the impact of pent-up demand for services deferred during Covid, has contributed to the escalation in claims volumes and costs.
In addition, it said “advances in drugs, procedures and other medical innovations and technologies, supporting enhanced healthcare outcomes, have also impacted on the cost of providing care to members”.
“This unprecedented demand for healthcare from our members has led to a rapid increase in claims volumes and associated costs. We are taking the difficult steps required to address this matter,” VHI Insurance DAC managing director Aaron Keogh said.
“We have implemented a broad range of value and efficiency measures within the business as part of these efforts, however, the scale of the increase in healthcare services accessed by our members means that this price increase is necessary,” Keogh said.
Keogh said VHI is “conscious of the financial pressures facing many of our members” and said the company is committed to delivering value by giving them access to high quality healthcare at the lowest possible prices.
In a separate statement, the Health Insurance Authority (HIA) – which regulates the health insurance sector – said that the trend of insurers increasing prices since the pandemic is part of a global pattern.
“We always encourage consumers to review their policy each year at their renewal date to ensure that their policy fits their health needs and budget,” HIA CEO Ray Dolan said.
“Consumers can use the free comparison tool on our website, hia.ie, to find the best policy for their needs.”
Health insurance expert Dermot Goode of Total Health Cover said the hike will add €105 per adult for those insured on VHI’s Enhanced Care 350 scheme, or between €230 and €315 per adult for those insured on its Health Plus Extra and Premium Care schemes.
“For a retired couple on dated plans such as Health Plus Extra (old Plan B Options), the increase since March 2023 will cost them just under €900,” Goode said.
“For the same couple insured on the gold-plated Premium Care scheme, they will have to find an additional €1,386 if they want to remain on the same plan.”
He also said that a family of two adults and two children will be “seriously impacted” by the increases.
“For those families insured on the likes of One Plus Plan or Enhanced Care 350, the total increase since March 2023 will be €504 and €440 respectively. The popular Company Plan Plus Level 1.3 corporate plan will increase by €586.”
Goode advised all those renewing on or after 1 March to “urgently review their options” with VHI and switch to an alternative insurer if necessary.
“The best advice is to decide on your budget for your family health cover and then challenge the insurers to find you similar cover that fits this. Auto-renewing without checking our alternative options should be avoided at all costs.”
Goode noted that Irish Life Health increased its price plans from 1 January, while Laya and VHI also increased the cost of around 26 of their corporate plans from the same date.
“This cycle of multiple price hikes looks set to continue 2024 as the insurers seem unable to predict with any certainty their future cost of claims.
“If we look at the 2023 trend, Laya increased their rates from April 2023 just after VHI increased their charges and we’re expecting something similar in 2024.”
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