VHI is raising the prices of health insurance plans that add €250 to the annual cost for a family of four

Vhi Healthcare customers are said to be affected by a premium price increase from the beginning of March.

The increase averages 4.8 percent across all plans. With an extension from March, the annual costs for a family with two adults and two children are between 60 and 250 euros more per year.

It comes after Irish Life Health increased its prices earlier this month.

The moves mark a reversal after both Vhi and Laya stalled price increases and instead paid rebates as private healthcare facilities saw usage fall during the lockdown.

Vhi blamed the increased demand for healthcare and rising healthcare costs for customers.

The price increase is necessary to ensure Vhi can continue to meet the cost of providing healthcare to its customers in 2023 and beyond, the insurer said.

This is the first price increase in two years, following a price cut in 2022 and returning €450 million in premium waivers to customers over the past three years.

Health insurance broker Dermot Goode of TotalHealthCover.ie said the average 4.8 percent increase in plan costs masks the fact that some plans are increasing by 6.5 percent.

He said two adults with Health Plus Extra or the old Plan B options face an additional payment of €267 per year if they remain on that plan.

Mr Goode said the good news is that most people have now extended for another year and may miss out on those increases for this year.

Laya Healthcare is now expected to announce a similar price increase.

Mr Goode said: “People don’t have to accept these increases. They should call when they extend and look around.”

Vhi said the cost of meeting customers’ healthcare needs has risen significantly over the past year as demand for healthcare services returns to pre-pandemic levels.

This trend also reflects pent-up demand for health services resulting from periods of restricted access to services over the past two years.

The state insurer said healthcare-related costs have risen significantly due to increases in wages, energy and other costs, including infection control. Many of these printing costs are amplified by global events impacting all sectors and industries.

Vhi Managing Director Aaron Keogh said: “We understand that our customers are already struggling with the pressure of rising costs across the economy and we have made every effort to minimize the price increase.

“Due to this cost pressure, however, the price increase is necessary.”

Ahead of Christmas, Irish Life Health increased the cost of its plans for those renewing or taking out a new plan from early January.

The increases bring health insurance costs up from €80 per year to €170 per year for a family of two adults and two children.

A livelihood crisis ensues that is expected to cost the average family around €3,000 a year as energy, fuel and food costs are soared.