Another round of health insurance hikes were announced yesterday that will add nearly €200 to typical cover for a family of four.

Vhi, the largest health insurer in the country with 1.2m members, said its premiums will go up by an average of 3% from the beginning of October.

The company blamed an increase in its costs – private hospital costs are up 13% and primary care costs are up 9% – and the number of claims, which are up by 9% over the past year.

It also warned that the ageing population will see costs rise even further. The price increase comes after recent jumps from the two other health insurers in the market – Laya and Irish Life Health – leaving those looking for cheaper cover with nowhere to turn.

It is Vhi's third increase this year. There was a 3% increase in March and some corporate plans increased on August 1.

Market expert Dermot Goode, of Health Insurance Ireland, said: "This latest increase from Vhi could cost from €15 to €80 per adult on some of their most popular schemes. For a typical family, it could add anything from €80 to €180 to their total bill.

"For adults on higher plans such as Premium Care, the increase could be up to €212 per adult."

However, not all plans are going up including the entry level plan, Public Plus Care. Vhi boss Aaron Keogh said yesterday: "The price increase is necessary as the demand for care and the cost of delivering that care continues to rise.

"We know the demand for healthcare services will continue to grow given Ireland’s ageing population and continued increase in the incidence of chronic disease."

Life expectancy in Ireland of 82 years and seven months is at record levels after rebounding since the Covid pandemic. The country ranks seventh in the European table compared to an EU average of 81 years and six months.

Typically older populations need more and expensive health care. Goode said families taking out health insurance face a "perfect storm" as they contend with continuous price increases, plans being retired and some benefits being changed.

He added: "Members need to be wary of the average figures quoted by health insurers. In some cases, the actual increase could be much higher depending on the plan. The cumulative impact of multiple rate hikes since the last renewal could leave members facing total increases of 6%, 10% or even higher depending on the plan in question."

(Pic: Eamonn Farrell/RollingNews.ie)