Ireland’s largest health insurer had already implemented an average price increase of 7% in January. During the first half of this year, VHI experienced a 14% rise in private hospital claim costs compared to 2023.

Additionally, VHI revealed a 25% reduction in children’s premiums on selected plans, effective October 1st. Some plans will also see the introduction of day-to-day benefits that were previously unavailable.

Aaron Keogh, Managing Director of VHI Insurance DAC, explained, “We have decided to introduce a price increase from October 1st because premium income has not kept up with healthcare demand and the associated claims costs. We need to price prudently to ensure we can continue to meet the healthcare needs of our members.

“We recognize the affordability challenges people are facing and the importance of retaining health insurance. Our commitment is to continue delivering value for money.

“VHI reported financial losses in 2023 due to the challenging environment we’re operating in. The past two years have seen accelerated growth in healthcare claims volumes and unprecedented increases in claims costs, driven by our members accessing more healthcare services than ever before.”

Commenting on the announcement, the Health Insurance Authority acknowledged the potential impact of these price increases on consumers but noted that Ireland’s health insurance market is open, allowing providers to adjust prices as needed. They also pointed out that these increases are driven by the cost of claims insurers receive. The Authority’s latest Annual Market Report highlighted a 15% increase in claims paid by insurers in 2023 compared to the previous year, with a slight uptick in claims for private hospitals.