Vhi announces an average price increase of 3% effective from 1st April 2021

 

25th February 2021 - Vhi today announced that it will increase its prices by an average of 3% across a range of plans effective from 1st April 2021.  The price increase is necessary to cover the rising costs of providing quality healthcare to customers in 2021 and beyond.  The cost of delivering care to our customers in clinical settings is increasing due to enhanced and necessary COVID related infection control measures as well as the cost drivers associated with increased access to the latest new drugs, new technologies and new procedures – all of which deliver better patient outcomes.

News of today’s price increase follows an announcement by Vhi in December 2020 that it was waiving a proportion of customers’ premiums for a second time. This decision reflected the fact that claims for 2020 were lower than expected as a result of the reduced access to healthcare facilities as part of the National Response to COVID-19.  As Vhi exists solely to meet the healthcare needs of its customers, uniquely, Vhi customers received two premium waivers. 

Declan Moran, Director, Marketing and Business Development said: “As we know, 2020 was an exceptional year for all sectors of society and the private health insurance market was no different. With the focus justifiably on public health and the national response to the pandemic, private facilities were unavailable to our customers for a period of time and public hospitals were treating mainly COVID-19 patients for most of the year. As a result, claims were down. In direct response to that, Vhi waived premiums for our customers on two separate occasions over the last 12 months returning €265 million to customers.”

“Despite the fact that claims were down in 2020, the cost of delivering care to those who avail of it, continues to rise. There will be significant pent-up demand across all parts of the healthcare system and we need to look to the future to ensure that we can deliver that care to customers, not just this year but over the next number of years. We have a responsibility to look forward and anticipate our customers future healthcare needs. Our pricing announcement today will ensure we can meet these future healthcare requirements.”

Commenting on the fact that some customers who are renewing will experience a price increase having just received a premium waiver, Declan Moran said: “Waivers of premium and pricing are determined by very different factors. Premium waivers are informed by historic behaviour. We look back on the claims experience and where claims are below what we forecast, we return value to our customers. Pricing looks forward and anticipates future healthcare needs and related claims costs. Our open and transparent approach to both helps to reassure customers that we continue to work to keep premium prices as accessible as possible while also ensuring they are appropriate to meet current and future healthcare needs.”  

While the waivers recognised the reduction in claims by customers in 2020, Vhi acted quickly during the pandemic so that customers continued to have access to vital treatments, procedures and clinical care. Vhi re-configured its own clinical services such as SwiftCare, Hospital@Home and Midwife@Home ensuring these services were safe and remained available for customers during COVID-19. We established a clinical call centre where patients were triaged and then treated in the most appropriate setting. We enabled customers use their private health insurance in new and innovative ways, working with providers to make certain procedures available outside hospital settings and developing new digital health and wellbeing services. Vhi also offered a range of supports to customers who found themselves in difficult financial circumstances as a direct result of COVID-19.

ENDS

 

 

Examples of Price Changes:

HealthPlus Access	Standard Rates pre 1st April 2021	Standard Rates from 1st April 2021	€ Increase per month
Adult Rate	€2,167.11	€2,238.12	€5.92
Child Rate	€459.27	€476.05	€1.40
2 Adults + 2 Children	€5,252.76	€5,428.34	€14.64
One Plan Family	Standard Rates pre 1st April 2021	Standard Rates from 1st April 2021	€ Increase per month
Adult Rate	€1,253.78	€1,282.86	€2.42
Child Rate	€249.10	€262.81	€1.14
2 Adults + 2 Children	€3,005.76	€3,091.34	€7.12
One Plan	Standard Rates pre 1st April 2021	Standard Rates from 1st April 2021	€ Increase per month
Adult Rate	€1,187.16	€1,214.90	€2.31
Child Rate	€242.16	€255.48	€1.11
2 Adults + 2 Children	€2,858.64	€2,940.76	€6.84
PublicPlus Care	Standard Rates pre 1st April 2021	Standard Rates from 1st April 2021	€ Increase per month
Adult Rate	€489.11	€503.78	€1.22
Child Rate	€134.11	€139.48	€0.45
2 Adults + 2 Children	€1,246.44	€1,286.52	€3.34

 

 

 

Vhi_Press

25-Feb-2021