QUINN HEALTHCARE, the State’s second largest private health insurer, is to increase the cost of its insurance policies by an average of 6 per cent from April 1st.
It is the company’s second price hike in just four months and comes on the back of price increases by VHI and Aviva.
The company said yesterday it had no choice but to increase its prices because Government increases in levies and tax relief changes were going to add an unplanned €13 million to its costs this year.
The cost of an essential policy for a single adult will go from €567 to €595, a 4.94 per cent increase, while the price for insuring a family of two adults, a student and two children under its essential health plan will increase from €2,058.24 to €2123.98, a 3.19 per cent increase.
The company’s essential plus (excess) plan for an individual is to go up from €898.06 to €976, up 8.68 per cent, while the cost of insuring a family of two adults, a student and two children under the same policy is to go up from €2,329.13 to €2532, an increase of €202.87 or 8.71 per cent.
The company was particularly vocal in its condemnation of the VHI’s price increases announced at the beginning of January and at the time it said they were “a direct result of the inefficiencies” within the State’s largest insurer.
The company insisted that it still offered good value for money when compared with its rival and general manager Donal Clancy said its own price hikes were “a direct result” of the increase in the health insurance levy by 11 per cent for adults and 20 per cent for children from January 1st; a 21 per cent increase in the cost of private beds in public hospitals, and changes to the age-related tax relief.
Mr Clancy said these increases were unexpected and came on top of a 16 per cent increase in the health insurance levy last year.
“These additional increases will cost our business an unplanned €13 million leaving us with no option but to increase our prices.”
He claimed the company’s first priority was “always to keep prices low for our customers” and said it had done “everything in our power to compete in this market, therefore this price increase is a last resort”.
Mr Clancy accused the outgoing government of completely ignoring consumers’ ability to pay for private medical insurance by “repeatedly imposing unwarranted increases on them in order to further subsidise an unregulated VHI”.