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30th January 2024 - Vhi announces an average price increase of 7% across its plans effective from 1st March 2024.
- Vhi announces an average price increase of 7% across its plans effective from 1st March 2024.
- Vhi members accessed more healthcare in 2023 – with demand for healthcare continuing to accelerate.
- Claims volumes up by over 20% compared with 2022.
30th January 2024 - Vhi today announced that it will increase the price of its health insurance plans by an average of 7% from 1st March 2024. The price increase is necessary to meet the healthcare needs of members as claims volumes have risen by more than 20% in 2023 and inflation has had a significant impact on the cost of delivering healthcare. Increased demand for healthcare combined with high levels of inflation are impacting healthcare systems around the world as healthcare facilities reopen fully post Covid.
In 2023, Vhi members accessed significantly more healthcare services than in previous years which were dominated by restricted access because of the Covid pandemic. The rapid return to full activity in hospitals post-Covid combined with the impact of pent-up demand for services deferred during Covid has contributed to the escalation in claims volumes and costs. In addition, advances in drugs, procedures and other medical innovations and technologies, supporting enhanced healthcare outcomes, have also impacted on the cost of providing care to members.
Commenting on today’s announcement Mr Aaron Keogh, Managing Director, Vhi Insurance DAC said “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.”
He continued “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. We have implemented a broad range of value and efficiency measures within the business as part of these efforts, however, the scale of the increase in healthcare services accessed by our members means that this price increase is necessary. 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.”
He continued: “Our members are now getting more healthcare treatments not only in traditional hospital settings but also through new healthcare services which we have designed, invested in, and delivered for our members in the community and online. Access and usage of our primary care services has also increased significantly and this is a positive development in the long term as we actively encourage our members to look after their health and are committed to providing them with more diverse and convenient healthcare options.”
“In the past 12 months Vhi introduced many new healthcare services for members including access to more preventative health services – helping them stay well. We know our members value these services and are using them. Last year alone there was over 630,000 healthcare interactions with Vhi’s Health and Wellbeing services including access to Vhi’s doctors, nurses and allied healthcare professionals. This represents a 21% increase in usage on the previous year.”
Vhi is the only provider in the market that exists solely for the benefit of its members. Any profits made are re-invested on behalf of members to provide new and enhanced services and during Covid when claims were significantly down Vhi returned €450 million in premium waivers to members.
In 2023 Vhi introduced a range of new benefits and services including a rapid access dermatology service, a sports exercise and musculoskeletal clinic, a Women's Health Clinic, a Positive Minds programme delivered by clinical psychologists and significantly increased capacity on the online health team.
Brighid Smyth / Niamh Walker
Vhi Group Services DAC
M: 086 8270905 / 086 608 6764
Notes to the Editor
Examples of Price Changes
Solvency and Financial Condition Report (SFCR) & Archive
Membership grows for eighth year in a row
Over 500,000 healthcare interactions with Vhi Health & Wellbeing Services in 2022
Vhi Group has announced its annual results for the year ending 31st December 2022. For the year reported, Vhi delivered a strong financial performance despite the impact of the ongoing pandemic, the economic consequences of the war in Ukraine, and the cost of living crisis. For the eighth consecutive year there was an increase in the number of people choosing Vhi as their healthcare partner.
Vhi Group achieved strong growth in demand for its private medical insurance offering with 23,400 additional health insurance customers choosing Vhi, bringing total membership to 1,177,600 at year end. Gross earned premium for private health insurance in 2022 was €1.6 billion up from €1.589 billion in 2021 driven by this increase in members.
Total claims paid in 2022 amounted to €1.425 billion, representing an increase of 10% on 2021.The cost of meeting customers’ healthcare needs increased in the second half of the year as demand for healthcare services returned to pre-pandemic levels. There was also an increase in the costs associated with the delivery of healthcare due to increases in wage, energy and other costs, including infection control.
Vhi achieved a net surplus of €34.3 million from consolidated business activities. This was lower than the previous year, when a net surplus of €65.3 million was achieved. This variance was due to the increase in claims volumes and costs, the reduction in market values of Vhi’s investment portfolio, and increased operating costs as Vhi invests in healthcare and technology.
Income from Vhi’s other insurance products and services including Vhi MultiTrip, Vhi Dental, Vhi International and Vhi Life grew substantially, amounting to €37.8 million, an increase on the €26.2 million recorded in 2021. Ireland’s emergence from Covid-19 restrictions helped drive growth, with Vhi’s MultiTrip’s insurance offering, in particular, recording a steep recovery in demand and closing out the year with over 327,000 customers.
See full press release here
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