Vhi, the largest provider of private health insurance in the State, is set to increase its premiums by an average of 7% from March 1.
The company said the price increase is necessary to meet the healthcare needs of members as claims volumes rose by more than 20% last year and inflation has had a significant impact on the cost of delivering healthcare.
It noted that increased demand for healthcare combined with high levels of inflation are impacting healthcare systems around the world as healthcare facilities reopen fully after the Covid pandemic.
Vhi raised its prices twice last year – in March and then again in October. The company had reduced prices by 3% in 2022.
Aaron Keogh, Managing Director at Vhi Insurance, said 2023 was an extraordinary year, marked by an accelerated growth in healthcare claims volumes stemming mainly from Covid related issues.
He was this was driving an unprecedented increase in healthcare claims costs and claim volumes in 2023 increased by more than 20% compared to 2022.
“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,” Mr 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,” he said.
“We are conscious of the financial pressures facing many of our members and are committed to delivering value by giving them access to high quality healthcare at the lowest possible prices,” he added.
