Vhi today announced that it is to increase prices by an average of 7% with effect from 1st October 2023. The increase is driven by a significant increase in demand for healthcare following years of COVID related disruption together with high levels of healthcare inflation in Ireland and around the world. This follows a price increase in March this year, the first introduced by Vhi in two years. Vhi reduced prices by 3% in 2022 and returned €450 million in premium waivers to its members during (2020 to 2022) arising from the impact of COVID on the Healthcare system.
A continuous increase in the numbers of members accessing healthcare as well as sustained increases in the costs associated with the delivery of healthcare are driving the need for a price increase. Vhi has a responsibility to set premiums in a prudent and sustainable manner to ensure that Vhi can provide its members with access to excellent healthcare and meet those costs.
Speaking about the increases in premium Aaron Keogh, Managing Director, Vhi Insurance Dac said: “We are conscious of the financial pressures that many of our members are facing however, the price increase is necessary to ensure that we continue to meet member’s healthcare needs. The pandemic brought significant impacts on healthcare delivery in Ireland but we have seen a strong recovery in the number of members accessing necessary healthcare treatments in all parts of the healthcare system through 2023.
“As well as a sustained rise in the volume of claims, there have been significant increases in the costs associated with the delivery of healthcare due to upward pressure on wages, energy and other costs. This price increase is necessary to ensure that we continue to meet the healthcare needs of our customers, giving them access to new and innovative drugs, procedures, technologies and services as required to meet their medical needs now and into the future.”
He continued: “Vhi exists solely to meet the healthcare needs of our members and all premium income received is used solely for this purpose. Any surplus generated is invested in improving the service experience and healthcare outcomes of our members.”
Healthcare in Ireland faces significant challenges into the future. Demographic challenges resulting from a growing and ageing population indicate a significant increase in chronic disease and mental health risk. Managing rising healthcare costs is an ongoing challenge and this has informed Vhi’s strategic approach to move beyond health insurance by providing a range of healthcare services directly to its members. Vhi has an extensive and growing healthcare footprint and in 2022 delivered over 523,000 healthcare interactions to its members. Vhi offer members access to care in a variety of different settings in the community and there has been a rapid acceleration in the development of Vhi’s digital services to ensure that resources are used appropriately and efficiently. Vhi is committed to continually innovating in how we deliver healthcare – specifically through the introduction of new services and new facilities such as our Vhi 360 Health Centres, digital and tele-health services, Vhi Hospital@Home, Vhi Health Screening facilities, Vhi Midwife Support Service and Vhi’s National Clinical Call Centre.
ENDS