Aviva is to increase the price of its health insurance premiums by almost 13 per cent.
The increase will come into effect on March 23rd.
The company says it greatly regrets the decision which is a consequence new public bed charges which came into effect on January 1st, the increase in the risk equalisation levy effective from the 1st March and the continued rise in claims’ costs driven by increased utilisation of healthcare and increased use of high cost drugs and technology.
Its the second price rise by the company this year and will mean an extra €760 in annual costs for a typical family.
In a statement this morning the copany says it shares the government’s and the industry’s concern that premium increases will result in younger, healthier customers leaving the market. And it has called on the Government to introduce lifetime community rating as a matter of urgency as recommended by the McLoughlin Interim Report.
Aviva CEO, Alison Burns said “The Government and the Industry need to work together to find ways of keeping young people in the market. Without them, the system of community rating becomes unbalanced and ultimately unsustainable. Unless we have young and healthy members to share the cost of the higher claims of older members, premiums will continue to rise.”
