Health warning: VHI axing popular insurance plans

IRELAND’S largest health insurer, VHI, has announced it is ending some of its most popular plans, after a series of price hikes over the past year.

The change will impact thousands of VHI members who remained on these plans over the years.

Plans being ended include Health Plus Extra (old Plan B Options) at €3,400 per adult per year, Health Plus Access (old Plan B) at €2,574, Health Plus Excess (old Plan B Excess) at €2,471 and also the Health Access scheme at €2,276.

VHI, which has 1.2million customers, said it has been reviewing its range of plans on offer for some time and wants to ‘deliver a simplified product structure and enhanced offerings to better meet members’ needs’.

A spokesman explained: ‘This is a deliberate step VHI has taken to address feedback from consumers and the HIA [Health Insurance Authority] that there are too many plans on the market and that consumers can get confused.

‘VHI is in the process of retiring four plans – Health Access, Health Plus Excess, HealthPlus Access and Health Plus Extra – and this is being done on a renewal-by-renewal basis.. We are writing to those members impacted.’

VHI members have been advised to contact the company to find the best plan to meet their needs.

A HIA spokesman said there are 130,000 people – around one in ten VHI customers – across the four plans being closed.

VHI made a loss last year as claim costs rose 18% on the back of higher wages for medical staff, soaring energy bills, and an increase in demand for health services after a lull during the Covid lockdowns. The latest move follows Irish Life raising its prices by almost 5% for its 510,000 customers in January.

Laya, which has 700,000 customers, also increased prices at the beginning of the year, on 14 of its plans.

Regarding the latest developments, health insurance expert Dermot Goode warned: ‘This will be of concern to older members who renewed on these [VHI] plans to retain full cover for major orthopedic and ophthalmic procedures.

‘They will have no option now but to shop around for alternative cover from their next renewal date... The good news is that there are similar alternatives available from VHI such as their Advanced Care products range, but members need to be careful that they aren’t transferred to more expensive options.’