Vhi have announced that they are to increase the price of their health insurance plans by an average of 7% from March 1.
A statement said that the increase is necessary to “meet the healthcare needs of members” after claims volumes rose by more than 20% in 2023.
The company has also pointed to inflation having a “significant impact on the cost of delivering” healthcare as a reason for the increase.
Vhi Insurance managing director Aaron Keogh explained: “2023 has been an extraordinary year marked by an accelerated growth in healthcare claims volumes stemming mainly from covid-related issues. This is driving an unprecedented increase in healthcare claims costs. Claim volumes in 2023 increased by more than 20% compared to 2022.”
Last year there were over 630,000 healthcare interactions with Vhi Health and Wellbeing services including access to Vhi doctors, nurses and allied healthcare professionals. This represents a 21% increase in usage on the previous year, according to Mr Keogh.
He added: “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 Vhi has implemented a “broad range” of measures as part of efforts to deal with the increases.
However, he noted: “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.”
Vhi members, he said, are now getting more healthcare treatments not only in traditional hospital settings but through new services that Vhi themselves have designed and invested in.
It is the second consecutive year that Vhi will increase its prices in March after 4.8% increase in March of 2023.
There are more than 20 Vhi healthcare facilities across Cork, including clinics in hospitals, out-patient centres and diagnostic centres where cover is provided.