HEALTH INSURER Aviva is planning to increase some of its prices for the second time this year, in a move that will affect about 90,000 of its customers.
The international group yesterday revealed the cost of its Level 2 Hospital plan would rise by 9.5 per cent for existing customers from September 1st.
This will take the cost for an adult to €1,030 for those who renew or switch from another provider.
The price increase will be even steeper for new customers after September 1st. They will have to pay an additional 19.7 per cent for the plan, which is similar to VHI’s Plan B. This will take the cost to €1,126.
VHI’s Plan B currently costs €1,224 while Quinn’s Essential Plus with no excess costs €1,110.
In March, Aviva increased its premiums by 14 per cent. This followed VHI’s decision to increase its premiums by up to 45 per cent, a move that was widely criticised by consumer interest groups.
At the time, Aviva defended the rises, saying they were a direct result of the Government increasing the cost of beds in public hospitals and a higher levy imposed on medical insurance policies.
More than 50,000 VHI customers are believed to have switched to Aviva following its price rise.
About 90,000 of Aviva’s 370,000 customers will be affected by the latest price rise.
The price hikes are another blow for hard-pressed Irish consumers, who are also facing rising petrol and gas prices and likely increases in mortgage interest rates.
Aviva said the increase was necessary “due to the combined effect of an increase in claims frequency and rising claims costs”.
Aviva customers on its other four plans are unaffected by the price rise.
Aviva argues that its level 2 plan still offers value when compared to its competitors, VHI and Quinn Healthcare.
It says a family of two adults and two children on its new level 2 plan would save more than €400 when switching from VHI’s Parents Kids Plan.
The Aviva family plan will cost just in excess of €2,500 for existing customers and €2,729 for new ones.
Aviva said that since 2010, its average claims costs for treatment in “high-tech” hospitals had increased by 13 per cent, while its public hospital average claims costs had gone up by 14 per cent.
Its high-cost drug spend had also increased.
