Vhi has confirmed that it will raise the cost of its health insurance policies by an average of 3% from the beginning of March, marking the third price adjustment within a 12-month period.
The insurer estimates that the increase will add between €35 and €160 to the annual premium for each adult, depending on the level of cover chosen. For families, particularly those on mid-range and higher plans, the additional annual cost is expected to range from €80 to €270.
This latest rise follows a 3% increase introduced last October, along with a further 3% adjustment applied in March 2025. With approximately 1.2 million customers, Vhi accounts for roughly half of Ireland’s private health insurance market.
All new and renewing customers who take out a policy from 1 March will be subject to the revised pricing from that date.
In a statement, Vhi said the increase is required to allow it to continue meeting members’ healthcare needs. The insurer pointed to rising costs across the healthcare system, noting that private hospital claims costs increased by around 13% last year, while the volume of claims rose by approximately 8% compared with 2024.
The company also highlighted wider pressures affecting healthcare costs, including medical inflation, an ageing population, and the growing use of new drugs, technologies and clinical procedures. Increased demand from members accessing healthcare services has further contributed to overall cost growth.
Vhi Managing Director Aaron Keogh acknowledged that health insurance represents a significant expense for households, stating that the insurer remains committed to offering a range of plans at varying price points to accommodate different needs and budgets.
Commenting on the announcement, Dermot Goode of Health Insurance Ireland cautioned consumers against focusing on headline averages. He noted that the actual increase for an individual policyholder may be higher, depending on the specific plan held.
Mr Goode added that many customers who renewed policies earlier in the year will avoid this latest increase. However, those renewing from March onwards may face the cumulative effect of both the October and March price changes.
He also pointed out that Level Health has already announced price increases from early February, while Laya Healthcare has yet to confirm any changes, though past patterns suggest a possible adjustment later in the spring.
For consumers, Mr Goode advised engaging with insurers before renewing, reviewing alternative plans within the same provider, and comparing options across the market. He emphasised that insurers typically recognise previous membership in full, meaning policyholders can switch without a break in cover. Independent advice, he said, can help ensure cover aligns with both healthcare needs and budget.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.