VHI has announced an average price increase of 3 per cent across its health insurance plans, effective from the beginning of October, in a move that is likely to see many families worse off by close to €200 a year.
The announcement from the State’s largest health insurance provider comes just days after Irish Life Health increased its price by a similar percentage and just over a week after Laya Healthcare rolled out price hikes averaging 4.5 per cent.
The move will impact on more than one million customers, with the increases starting to take effect from October 1st, although individual customers will not be hit with any hikes until their renewal date.
The widely anticipated move will see some individual customers paying just under €100 a year more for cover while some families are likely to be down closer to €200. For those on older plans, the increases could be even higher.
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“The price increase is necessary as VHI navigates the dual challenges of an increase in demand for healthcare and an increase in the cost of delivering that healthcare,” the company said in a statement issued on Tuesday morning.
“The volume of healthcare delivered to members in private hospitals, day hospitals and non-hospital settings has increased by 9 per cent in the last 12 months. Meanwhile, the cost of delivering that healthcare also continues to rise. In 2025, VHI saw a 13 per cent increase in private hospital claims costs when compared to 2024 and a 9 per cent increase in the cost of primary care claims.”
The VHI’s managing director, Aaron Keogh, said demand for healthcare services is going to continue to grow given Ireland’s ageing population and a continued increase in the incidence of chronic disease.
“Significant shifts in how healthcare is delivered are required to meet this demand, and prevention and intervention models will be critical to creating a sustainable future healthcare model,” he said.
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The Health Insurance Authority (HIA) noted the price increase and said affected consumers will be informed of any changes to their plan, including any price or benefit changes, in their renewal letter.
“Price increases are understandably unwelcome to consumers, particularly during a time of rising living costs and recent announcements by other insurers regarding price adjustments from October,” the HIA said in a statement.
“While insurers are free to set their prices based on commercial factors such as medical inflation and claims costs, affordability must remain a priority. Consumers may be able to find better value by shopping around and thinking about what benefits are most important,” the statement continued.
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The authority advised anyone reviewing a policy to consider taking on a higher excess or reducing outpatient benefits if they are not being used regularly.
It also said those looking to cut costs could consider whether a semi-private or public room could meet their needs rather than a private room.
“As always, members need to be wary of the average figures quoted by health insurers,” said Dermot Goode of Total Health Cover.
“In some cases, the actual increase could be much higher depending on the plan held. The cumulative impact of multiple rate hikes since the last renewal could leave members facing total increases of 6-10 per cent or even higher depending on the plan in question.”
He also noted that 1.25 million health insurance customers – about half the total market – are due to renew their cover between November and February “and all insurers are increasing their rates now in advance of this peak renewal period”.
He added that it was “a perfect storm for consumers at present who have to contend with continuous price hikes, plans being retired, and some benefits being changed. Even if you plan on staying on the same plan, you should check with your insurer to make sure no benefits have been reduced.”
