VHI blames inflation as it rolls out price hikes averaging 2.75% from October

The VHI is increasing the cost of its premiums again, by an average of 2.75 per cent, from the start of October. The State’s largest private health insurance provider said the hikes were necessary as a result of inflation across the healthcare sector. The move will hit different cohorts in different ways, depending on the policy they hold, but some families are likely to be worse off by close to €300 as a result of the increases. This is the second increase in premiums announced by VHI this year, after an average 3 per cent rise that was announced in January and took effect from March 1st.In a statement, a spokeswoman for the provider said it had seen private hospital claims costs rise by more than 9 per cent this year with day-to-day care claims costs such as GP, physiotherapy and consultants, rising by approximately 14 per cent. READ MOREShe said the rise in private hospital costs was also driven by an increase in claim volumes – up more than 5 per cent compared with 2025 – reflecting, it said, “the continued growth in the number of members accessing healthcare services”.Demand for high-cost healthcare services, including cancer, cardiac and orthopaedic care, has also increased, with the numbers accessing these services jumping by nearly 9 per cent compared with the same period last year.Claims costs for these treatments also rose, showing the continued demand for some of the most complex and costly healthcare services provided to members.“We continue to see strong demand for healthcare services across hospitals and everyday healthcare services such as GP and consultant visits and physiotherapy,” said the VHI’s managing director Aaron Keogh.“While increased utilisation and healthcare costs continue to place upward pressure on claims cost, it also demonstrates the significant care and value our members receive from their cover,” he said. He acknowledged that health insurance is a significant financial commitment for individuals and families and pointed out that the VHI “exists solely for the benefit of our members”.[ Woman hit with €1,784 bill after VHI rules Blackrock Clinic stay unnecessaryOpens in new window ]He said the VHI paid out €1.84 billion on members’ healthcare claims last year. VHI almost doubled its profits last year after it raised premiums twice. The State-owned group reported a surplus after tax of €71.2 million for 2025. That was up from €36.3 million in 2024 and from a net deficit of €43 million in 2023.Premiums in 2025 also rose twice – by an average of 3 per cent in March and another 3 per cent in October.“Any surplus made by VHI is reinvested to improve member services, enhance benefits, expand access to care and support the delivery of better healthcare,” Keogh said. The move comes less than a week after Laya Healthcare announced an increase in the cost of its premiums by an average of just under 3 per cent.Depending on the plan, the latest increase could cost an individual an additional €35 to €65 a year while those on VHI’s higher plans, could see increases of between €110 and €150 per year. For a typical family, the increase could add approximately €110 to the annual health insurance bill while a family on higher plans, such as advanced care extra day to day, could see a total increase of close to €260. For a retired couple on the Vhi’s top Premium Care plan, the increase could add a further €300 to their annual bill. “The latest increase follows Laya Healthcare’s increase announced last week and continues a similar trend of insurers increasing their rates in advance of the peak renewal period,” said Dermot Goode of healthinsuranceireland.ie. “On a positive note, there appears to be less upward pressure on rates, which hopefully means the days of double digit, cumulative increases may be coming to an end. “He said that as with all insurers, the VHI is “attributing these increases to the rising cost of claims. Not all of VHI’s plans are increasing in October, and we can expect further ad hoc increases between now and the end of the year on many of its corporate plans.”He stressed consumers would have to be very careful with the average figures quoted by insurers “as some plants could increase by double the average figure or even more. Consumers should also remember the previous rate hikes earlier in the year, which mean the cumulative impact could be closer to 7 per cent or even higher.”He urged people notto accept these increases without “first engaging with their insurer and challenging them to find similar cover that matches their budget. New plans and deals are being introduced all the time, which consumers may not be aware of unless they engage with their insurer by phone.”