| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Jan 7, 2011 - 7:06 AM


Vhi Healthcare announces health insurance premium hikes of 15%; Plan B Options to cost 45% more
By Finfacts Team
Jan 6, 2011 - 11:41 AM

Email this article
 Printer friendly page

Vhi Healthcare today announced health insurance premium hikes of 15%. For their average family customers, rates will increase next month by approximately €331 per annum or €27.60 per month (price of two adults and two children on the Parents & Kids plan) and that the same price increase of 15% will apply to the premiums of 60% of its customers. 

The price increase will be effective for renewals from February 01, 2011 and is said to be necessary to cover the cost of providing quality care to our customers over the next 12 months.

Speaking at the announcement, Jimmy Tolan, chief executive, Vhi Healthcare, said “year on year our customers continue to need to access more healthcare services and we have to set premiums to cover the cost of this.  We anticipate that our customers will require 10% more healthcare in 2011 compared to 2010.  In addition the recently announced increases in public hospitals of 21% which will increase our healthcare costs by €60 million  in 2011 together with further planned increases for 2012 accounted for 8% of the planned price increase.  Over the last two years we have taken many steps to contain the rising costs of meeting our customers healthcare needs. These include a 15% reduction in consultants fees, 6% reduction in private hospital fees, agreeing maximum revenue levels for private hospitals and an annual reduction in administration costs of €15 million.  Today’s price increase is necessary to provide healthcare cover for all of our customers.”

At the launch of the Annual Report for 2009 last July, Jimmy Toolan said the company lost 120,000 customers in the year. The insurer spent over €1.3bn in funding the healthcare needs of its customers. This was up 14% on the previous year - - at a time of price deflation - -  with over 50% spent meeting the healthcare needs of its older customers. VHI lost a further 48,000 subscribers last year.

 In 2009, VHI’s average healthcare spend per customer was €900 which is twice the level of its market competitors due to the age profile and health status of its customers.

Family Plans

Families on the Parents & Kids plan, Vhi Healthcare’s most popular family plan, will see their premiums increase by 15% in February 2011 or approximately €331 per year.  Over the past two years families have seen prices increase by 13% in total as we decreased our child rate on our most popular family plans in 2009.  This compares favourably with family customers of one of Vhi Healthcare’s competitors who have seen their premiums increase by 33% in the same timeframe.

Premiums for a family of two adults and two children on Vhi Healthcare’s Parents & Kids:

Date

Adult Premium

Child Premiums

2 adults & 2 children

February 2011

€1,043.04

€226.75

€2,539.58

February 2010

€906.99

€197.18

€2,208.34

February 2009

€828

€300

€2,256

The One Plans in April 2010 cover over 78,000 customers on these plans. 

Premiums for a family of two adults and 2 children on Vhi Healthcare’s One+ Plan:

Date

Adult Premium

Child Premiums

2 adults & 2 children

February 2011

€828

€218.50

€2,093

March 2010

€720

€190

€1,820

Plan B Options to cost 45% more

Health insurer Aviva said is deeply concerned about the decision by VHI to increase the cost of health insurance for hundreds of thousands of its most vulnerable customers by 45%. The 45% increase announced today and VHI’s call for increases in the health insurance levy show that VHI has abandoned community rating in favour of targeting younger customers with poor value plans that offer lower levels of benefits for consumers.

Aviva said that over 2.2m health insurance customers have seen and heard many, many statements about reform of the VHI’s broken model and yet none of these statements have been supported by meaningful action from Government. With today’s 45% increases, the continued deterioration in the VHI’s reserves and its continued failure to meet the regulatory requirements for insurance companies, it is clear that the VHI continues to operate without accountability.

The insurer said strong intervention by the Government is now an urgent requirement to prevent the VHI from continually penalising its most vulnerable customers with unaffordable increases while simultaneously ignoring the significant cost savings to be made by reforming the VHI.

"Another key fact which the VHI has chosen to ignore today is the gaping hole in its solvency reserves. The VHI or the Department of Health and Children must immediately clarify how many hundreds of millions of taxpayer’s money will be required to ensure health insurance remains affordable for all," Aviva said.

Vhi said it incurred losses of €100m on the two health insurance plans last year.

The State-owned insurer will increase the premium for one adult on Plan B by €317 to €1,224 and Plan B Options by €444 to €1,430 from February 1, 2011. This will be an increase of €26 per month for Plan B customers and €37 per month for Plan B Options customers. 29% of Vhi Healthcare’s customers currently have Plan B or Plan B Options.

Jimmy Tolan added: “ We regret having to implement this very difficult pricing decision.  Unfortunately Vhi Healthcare  can no longer afford to make available the very wide range of cover provided by these plans at the previous levels of pricing . Even with the announced price increases this will not prevent us from incurring significant losses in providing the cover under these plans .”

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%