Private health insurance rates set to rise again

Thousands of Irish families will see higher health insurance costs as VHI, Laya Healthcare, and Irish Life Health increase premiums from Wednesday, October 1. VHI and Irish Life Health are raising rates by an average of 3%, while Laya Healthcare is increasing premiums by 4.5%, marking the second hike of the year for all three providers.

Dermot Goode of Health Insurance Ireland warned that actual increases may far exceed these averages. Depending on individual plans, policyholders could face hikes ranging from 4% up to 27%, with VHI-insured families potentially paying an extra €156 to €428. Laya Healthcare increases could add €4–€366 for families, while Irish Life Health members may see rises of €130–€230 per adult.

Insurers cite rising claims costs, particularly in private hospitals, as the primary driver. However, the Health Insurance Authority notes that market growth is slowing. Currently, 46% of the population, or 2.53 million people, hold private health insurance. Growth in new policyholders is also easing, with only 4,130 additional people insured in the three months to June, compared with 7,318 in the first quarter.

These increases underscore the ongoing tension between managing cost pressures and maintaining competitiveness, while prompting consumers to evaluate whether their coverage aligns with their budgets and healthcare needs.

See how these premium hikes could affect your health coverage decisions and plan strategy. Read here.