VHI hikes health insurance premiums by 2.75% citing inflation

The VHI is raising its health insurance premiums again, with an average increase of 2.75% set to take effect from October. Ireland's largest private health insurer stated that the hikes are a necessary response to rising inflation across the healthcare sector.

The increase will impact different policyholders differently, but some families may see their costs rise by as much as €300. This is the second time VHI has announced a premium increase this year; an average 3% rise was implemented in March.

A VHI spokesperson explained that the company has observed over a 9% increase in private hospital claims costs this year. Additionally, claims for day-to-day care, including GP visits, physiotherapy, and consultant fees, have risen by approximately 14%. The spokesperson noted that increased claim volumes, up over 5% compared to 2025, also contribute to the rising costs, reflecting "the continued growth in the number of members accessing healthcare services."

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We continue to see strong demand for healthcare services across hospitals and everyday healthcare services such as GP and consultant visits and physiotherapy. 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.

Demand for high-cost treatments, such as cancer, cardiac, and orthopedic care, has also grown, with a nearly 9% increase in members accessing these services compared to the same period last year. The VHI's managing director, Aaron Keogh, acknowledged the sustained demand for healthcare services and stated that "while increased utilization 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."

Keogh also highlighted that VHI reinvests any surplus to enhance member services and benefits. Last year, VHI reported a surplus after tax of €71.2 million, a significant increase from previous years. This move follows a similar premium increase announced by Laya Healthcare, which raised its rates by just under 3%.

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Any surplus made by VHI is reinvested to improve member services, enhance benefits, expand access to care and support the delivery of better healthcare.