Vhi, Ireland’s state-owned health insurer, has announced a 3.5% increase in the cost of its health insurance premiums, effective from October 1, 2024. This marks the second price hike by the company this year.
A Vhi spokesperson attributed the decision to a significant surge in healthcare claims, with private hospital claims rising by 14% in the first half of 2024 compared to the previous year. The spokesperson noted that the escalating costs of healthcare, particularly in private hospitals and related professional services, are driving the need for the price adjustment.
In an effort to mitigate the impact on families, Vhi is offering a 25% reduction in premiums for children enrolled in selected plans. Additionally, from October, certain plans that previously lacked day-to-day benefits will see these features added.
Customer Communication and Justification
Customers will be notified of any changes to their plans, including adjustments in pricing and benefits, in their renewal letters.
Aaron Keogh, Managing Director of Vhi Insurance DAC, commented on the price increases: “We have decided to implement this price increase from October 1 because the income from premiums has not kept pace with the growing demand for healthcare and the rising costs of associated claims. To ensure we can continue to meet the healthcare needs of our members, we must price our plans prudently for the future. We understand the affordability challenges many people face and the importance of retaining health insurance, and we remain committed to delivering value for money.”
Keogh also highlighted the financial pressures the company is facing, citing the losses reported in 2023. “The past two years have seen an accelerated growth in healthcare claims volumes, leading to unprecedented increases in claims costs. Our members are accessing more healthcare services than ever before across various settings.”
Enhanced Services and Preventative Care Initiatives
Vhi continues to support its members by providing access to a broad range of services aimed at maintaining health and preventing illness. The company has been expanding its Vhi 360 Health Centres, which offer services such as rapid access dermatology, a sports and musculoskeletal clinic, a paediatrics clinic, a women’s health clinic, and a positive minds program.
Members can also access expert clinical care digitally through the Vhi app, which allows them to book online appointments with doctors, physiotherapists, dieticians, and speech and language therapists based in Ireland. Utilization of these digital services continues to grow, a trend Vhi welcomes as part of its proactive approach to healthcare.
Regulatory Oversight and Consumer Options
The Health Insurance Authority (HIA) has been informed of Vhi’s planned price adjustments. A spokesperson for the HIA acknowledged the potential impact on consumers but emphasized that the Irish health insurance market is open, allowing providers to adjust prices based on the cost of claims.
The spokesperson pointed out that there have been multiple health insurance price increases across the market in the past year, driven by medical inflation and a rise in claims. According to the HIA’s latest Annual Market Report, total claims paid by insurers in 2023 increased by 15% compared to the previous year, with a slight rise in claims for private hospitals.
The HIA encourages consumers to review their health insurance policies annually to ensure they are on the most suitable plan for their needs. The Authority’s helpline is available to provide guidance, answer questions, and help consumers find a health insurance plan that fits their budget.
