Families with VHI face fresh hike... a year after last rise

THE country’s largest health insurer, VHI, yesterday announced increases of around €50 for families – its second hike since last year.

The firm, which has more than one million customers, announced prices will go up by an average of 2% from the coming May.

The rise comes on top of a 3% rise the same month last year. It means a family plan for two adults and two children costing about €2,700 will cost an extra €54 a year after May 1, with the increase.

The move has been criticised by Consumers’ Association of Ireland chief Dermott Jewell, who said: ‘VHI will likely suggest that 2% is a small but necessary increase.

‘That may be a reality but there is the other reality that this is another increase on already expensive insurance that will be one increase too many in terms of affordability-especially for a family unit.’

He added: ‘In addition, VHI needs to cut back on its near impossible-to-wade-through myriad of offers and help that consumers face in trying to understand whether or not there actually is a policy that suits their needs and is affordable to them.’

The average 2% rise is four times the current inflation rate of 0.5%.

VHI spokesman Declan Moran said: ‘We have worked hard to keep the price increase as low as possible but need to ensure that our plans continue to deliver new and innovative benefits to our customers. Our commitment to our customers is that we will continue to deliver health insurance plans that are relevant to their needs and provide them with access to the latest drugs and treatments while striving to keep those plans affordable.’

A spokesman for the Health Insurance Authority said it has no role in controlling prices but the insurers must offer their plans to all customers under ‘community rating’, which means people cannot be discriminated against on grounds of age.

‘Even basic shopping around will save you up to 30% on premiums. Things like taking a small exception limit where you would cover the first €150 of a claim can have a major impact on the premium.

‘We also have the concept of lifetime cover and open enrolment, which means you’re entitled to switch your cover to another provider and they must take you.

‘If you have a pre-existing condition there are periods before you are actually covered but they are defined and well understood. Also your insurer must offer to renew your cover every year, it’s basically community rating and there’s a lot of support for it,’ the spokesman said.

Of the four health insurers VHI, Aviva Health, GloHealth and Laya Healthcare, with more than one million customers, VHI is the largest.

Dermot Goode, of Health Insurance Savings, said: ‘The rise is no surprise and all the companies are reviewing their rates every month now. We’re seeing there’s more claims.

‘What’s really worrying, with increased claims, premiums must go up – but what else is driving rates?

‘The worst thing by a mile is this practice in public hospitals of charging people who have health insurance. They are being targeted and penalised for having health insurance.

‘They’re being asked to sign forms which are not explained and their insurance company has being charged a multiple of ten of what they should be charged for no extra services,’ he said.

‘It is completely above board, they are allowed to do it but you have to ask about any practice where you target people who are sick and vulnerable with charges they shouldn’t be.’

It emerged that although the average new hike from VHI was 2%, some plans will rise by nearly double that.

VHI also raised prices by 3% rise in November last year, blaming it on the rising cost of claims, particularly in public hospitals.

‘It will be one hike too many’