VHI ‘double whammy’ as customers face second price hike
HEALTH insurer VHI is to increase its prices for the second time in less than a year.
The latest move will see premiums rise by an average of 2pc from March.
As a result, a family of two adults and two children will pay between €75 and €150 a year who are renewing health insurance.
It comes just months after the State-owned insurer raised prices. In August, it pushed up premiums by an average of 6pc.
VHI is the largest health insurer in the State, with around 1.1 million customers.
The company blamed a rise in the cost of paying out on claims for the latest hike.
Director of marketing and business development Declan Moran said: “In the last year, we have seen a significant increase in claims paid on behalf of our customers. In particular, there has been an increase in activity in private hospitals.”
He said primary-care claims had also increased because VHI customers were now using their “day-to-day benefits” more often.
“In 2018, we improved primary care cover on our health insurance plans and customers are now getting more value back from their health insurance,” Mr Moran said.
The latest rises will increase the cost of the popular One Plan Family by €74 from March. This is on top of the August rise.
The Health Plus Access plan, which used to be called Plan B, will rise in price by 3pc. This will mean that a retired couple on this plan will face an extra €135 in premium payments.
Independent health insurance expert Dermot Goode, of TotalHealthCover.ie, said those with VHI cover were being hit with a “double whammy” due to the latest rise and the one in August.
He predicted more price rises to come as health insurers struggle with rising claims costs.
Irish Life has announced three premium rate rises in 12 months, with the latest taking effect on January 1.
Mr Goode said those renewing would be paying more, if they do not seek out better-value cover.