Ireland’s largest health insurer, Vhi, has announced it will increase its premiums by an average of 3 percent from October, marking its second price rise this year.
The company, which covers around 1.2 million people — nearly half of the health insurance market — said the adjustment is necessary due to rising costs in healthcare delivery. Managing Director Aaron Keogh explained that higher demand for care and the growing expense of treatment, particularly in high-tech hospitals, are driving the latest hike.
For policyholders, the increase will translate into additional costs of between €15 and €80 annually for an individual plan, while families could see premiums rise by about €180. Those currently mid-contract will not be affected until their renewal date after October. Customers will be formally notified of any price or benefit changes in their renewal letters.
Second increase in 2024
Vhi’s premiums were also raised by 3 percent in March, following a pattern of twice-yearly increases across the industry. October has traditionally been a peak renewal period, with more than half of all policies up for renewal in that month, making price changes particularly impactful for households.
Other insurers have made similar announcements in recent weeks. Irish Life Health, which insures around 500,000 people, confirmed a 3 percent average increase effective from October. Laya Healthcare, with more than 700,000 customers, revealed on August 15 that it will raise prices by an average of 4.5 percent, also starting in October.
Rising costs and consumer warnings
In a statement, Keogh acknowledged the financial burden on families but said Vhi would continue offering a wide range of plans, including more affordable entry-level options, to ensure members could access the care they need.
Consumer experts, however, warn that the headline figures may not tell the full story. Dermot Goode of Health Insurance Ireland said some policyholders could face much higher increases depending on their plan. “The cumulative impact of multiple rate hikes since the last renewal could leave members facing total increases of 6 to 10 percent, or even higher,” he noted.
Goode urged consumers not to automatically accept higher renewal premiums, advising them instead to negotiate with their insurers or explore alternative plans that may offer similar benefits at a lower cost.
Regulator urges shopping around
The Health Insurance Authority (HIA) described the rises as “understandably unwelcome” at a time of increased living costs. While acknowledging that insurers can set their prices based on claims and medical inflation, the regulator stressed that affordability must remain a priority.
The HIA encouraged policyholders to review their plans annually and shop around. “Consumers are free to move to any plan on the market at their renewal date,” it said, urging members to consider whether their current policy still matches their lifestyle and healthcare needs.
