The VHI, which announced five additional health-care plans yesterday, has had a membership increase of 56,000 people in the past year since its competitor BUPA began trading. Acting chief executive Mr Aidan Walsh said the "exceptionally high" level of new membership has been maintained for almost two years.
Mr Walsh said the new VHI products were being launched following research of members' needs and not in response to competition from BUPA. He said VHI has "a wider range of benefits, better out-patient cover and more hospitals and more doctors". The company had been working on the development of new products for a number of years.
Mr Walsh added that the health-care plans unveiled yesterday should maintain the momentum of growth.
The new "Option Plans", a range of benefits for people looking for increased health insurance cover, include full cover for heart surgery procedures for those on lower health insurance plans, enhanced maternity benefits, increased cover for GP visits and out-patient visits with consultants, the introduction of student rates, and an extension of overseas cover.
"VHI is winning new members at a rate of over 1,000 a week and this exceptionally high level of new membership has been maintained for almost two years. A membership base of 1.43 million provides us with an unrivalled platform from which further expansion can be initiated," said Mr Walsh.
But BUPA says that its "price advantage" has widened considerably. The company said that its Essential Plus Scheme at £215 per annum (group rate) is now £75 less expensive than VHI's Plan B Option at £289. A student with BUPA, a spokeswoman said, is charged £75 compared with the VHI Plan B option of £121. However, subscribers to BUPA's Essential Plus Scheme have to pay an excess of £50 each time they are hospitalised.
VHI introduces options plan for those seeking greater cover: page 3 Editorial comment: page 13