VHI, Ireland’s biggest health insurance provider, is planning to discontinue some of its sought-after schemes next month, affecting thousands of its members. The insurance policies set for discontinuation include Health Plus Extra, Health Plus Access, Health Plus Excess, and Health Access. As of May 1st, they will not be available for new sign-ups or renewals.
The company’s decision will significantly impact long-term VHI members who have maintained these plans, formerly known as Plan B, Plan B Options, and Plan B Excess. With 1.1 million clients, VHI’s decision is anticipated to impact approximately 10% of its customers, which is estimated around 100,000 to 150,000 people.
According to Dermot Goode, a health insurance expert at totalhealthcover.ie, this unexpected decision by VHI is especially worrisome for older members who have subscribed to these plans to secure comprehensive coverage for significant orthopaedic and ophthalmic operations. He suggests that the affected members would be obliged to explore different cover options at their following renewal date.
Those using the disappearing plans—most likely registered through employer group schemes—urgently need to reassess their options. Although these plans provide comprehensive cover, they can be costly, having been on the market for nearly three decades. Noteworthy is that the customers on these plans experienced substantial price surges in the past 12 months alone.
In 2023, the state-owned insurer experienced a financial setback, running at a loss of €43.4 million. This downturn was attributed to an 18% rise in claim costs, increased labour and energy charges, and a burst in demand for healthcare services. However, it did see a 3.2% hike in premium income and growth of over 37,000 in its customer base.
Last year, the insurance company hiked the premium charges twice, escalating them by over 12 per cent on average. Furthermore, it communicated an additional average increase of 7 per cent in premiums the previous month.
Mr Goode highlighted that parallel choices are accessible from VHI, such as the Advanced Care product range. Nonetheless, he cautioned members to ensure they are not moved to pricier options. He noted that numerous VHI members impacted by the termination of these plans might be predisposed to merely accept the substitute provided by VHI. Mr Goode advised all members to refrain from automatically renewing with whatever VHI proposes, advocating instead to explore all available options in the market initially.
He stated that members might be taken aback at finding they can acquire comparable coverage at a reduced price. For those wary of modifications, Mr Goode suggested seeking assistance from a trusted confidant or relative, or employing the services of a qualified broker to conduct this review on their behalf.
Mr Goode stressed the importance of starting a dialogue with VHI or other insurers always via telephone since all conversations are recorded. He advised initiating this well before the renewal date, thereby allowing adequate time for consideration. Establish your healthcare budget before engaging with them and challenge them to locate the nearest equivalent plan within this budget. Should you be initiating a conversation with a new healthcare insurer, be completely open with them about your current plan, medical past, scheduled treatments, etc.
Make a point to understand the differences between any offered alternatives and your current plan. If you feel unsure or overwhelmed by the varied choices, it would be wise to solicit independent advice prior to making your final decision, Mr Goode added.