VHI Healthcare is to increase its prices by between 6% and 12.5% from March 1. The insurer said the increases are due to rising customer claims costs.
The average increase for VHI customers is 9%.
Declan Moran, the company’s chief executive, said its private health insurance business is currently loss making and the market is contracting. He said the company’s average claim per customer has increased by 15% since 2009, with growth in demand for healthcare being the most significant factor.
The increase for the VHI’s most popular plan, the OnePlus plan, will see the current annual premium for two adults and two children rising from €2,093 to €2,250.
Mr Moran said the company needs to be sustainable into the future with a view to achieving financial regulation as required by the recent ruling of the European Court of Justice. ”This is a stategic imperativate for us,” he stated.
VHI said it spent €1.2 billion in funding its customers’ health needs last year and added that it has made savings of over €190m since 2009.
The VHI announcement is the latest in a number of increases in plans by private health insurers. Aviva’s health plans are increasing by 15% next month, and Quinn Insurance plans also go up by 6% next month.