VHI to cut prices on 7 of its lowest cost health plans

The country’s largest health insurer, the VHI, is to reduce the price of seven of its lowest cost insurance plans.

The price of all its other health insurance plans is to be frozen, the company said.

VHI said the cost reductions would be up to 3 per cent in some cases. The seven insurance plans to have their prices reduced are: One Plan Starter, One Plan Starter Day to Day, One Plan 500, One Plan 250, One Plan 150, First Plan Level 1 and Family Plan Level 1.

VHI chief executive John O’Dwyer said by focusing on savings and efficiencies the company was in a position to announce premium reductions on seven plans together with no price increase on any of our plans on the 1st March 2015.

“The business is performing well and over the last two years has delivered solid financial results. We continue to attract new business and our most recent offers have proved very successful and attractive to young families.

“Also, we are committed to continuing to drive an ambitious cost containment programme with a view to securing savings which can be passed directly to our customers.

This cost containment programme has focussed on a number of key areas such as reduced rates for consultants and hospitals, increased use of clinical indicators and clinical audit and the continued movement of treatment to the most cost-efficient setting. All of these factors are facilitating today’s price decrease.”

VHI said that a family of two adults and two children on its One Plan Starter Day to Day plan renewing in March could save €55 on the price they paid last year under the new reductions.

The company said there would be savings of €91 in the case of a family on its “Family Plan Level 1”.

Vhi also said it would put in place a half price children's offer on four plans - One Plan Family, Parents & Kids Excess Plan, Teachers' Plan Select and Nurses' Plan Select -- for customers joining or renewing these plans from 1st March 2015 until 30th April 2015.

Last November Minister for Health Leo Varadkar announced a series of measures designed to tackle the problem of rising health insurance premiums.

The package included a reduction in stamp duty, lower premiums for young adults, the previously announced introduction of Lifetime Community Rating and a reduction in the Health Insurance Authority Levy.

The Minister said his proposals built on Budget measures which included a freeze on hospital bed charges, and no decrease in the relievable amount for tax relief purposes.