First price increase by Vhi in two years following a price reduction in 2022 and the return of €450m in premium waivers over the last three years
26th January 2023: Vhi today announced that it will increase premiums by an average of 4.8% across its health insurance plans from 1st March 2023. The increase is due to the increased demand for healthcare and the rising costs of providing healthcare to customers. The price increase is necessary to ensure that Vhi can continue to meet the costs of providing healthcare to its customers in 2023 and beyond. This is the first price increase in two years, following a price reduction in 2022 and the return of €450m in premium waivers to customers over the past three years.
The cost of meeting customers’ healthcare needs has increased significantly in the last twelve months as demand for healthcare services returns to pre-pandemic levels. This trend also reflects pent-up demand for healthcare services resulting from periods of reduced access to services over the last two years. In parallel, there has been a significant increase in the costs associated with the delivery of healthcare due to increases in wage, energy and other costs, including infection control. Many of these supply cost pressures are amplified by world events, impacting all sectors and all industries.
Commenting on the price increase, Mr Aaron Keogh, MD, Vhi Insurance DAC said “We understand that our customers are already dealing with the pressure of rising costs across the economy and we have made every effort to keep the price increase as low as possible. However, because of these cost pressures, the price increase is necessary. This is 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 concluded: “Vhi exists solely to meet the healthcare needs of our customers and all premium income received is dedicated to delivering and meeting the healthcare needs of our customers and patients. Any surplus generated is invested in improving services, expanding the care that we deliver or is returned as value to our customers. We continue to focus on managing costs and managing efficiencies in our business in order to keep prices affordable. In addition, we offer our customers options to access care in a variety of different settings in the community and there has been a rapid acceleration in the development of our digital services. Last year there were close to half a million healthcare interactions with Vhi’s Health & Wellbeing services. We are committed to ensuring that we can continue to innovate in how we deliver healthcare – specifically through the introduction of new services and new facilities such as our Vhi 360 Health Clinics, digital and tele-health services, Hospital@Home, Vhi Health Screening facilities, Vhi Midwife Support Service and Vhi’s National Clinical Call Centre.”
ENDS
Issued by:
Brighid Smyth / Niamh Walker
Vhi Group Services DAC
Ph: 01 6147348 / 01 887 1825
M: 086 8270905 / 086 608 6764
Editors Notes
Examples of Price Changes
