THE COUNTRY’s largest health insurance company, VHI Healthcare, has said it is to reduce premium costs for children covered by its “plan B” and “plan B option” schemes.
The company said the move would represent a saving of at least €100 per child with effect from the beginning of April.
The VHI said up to 200,000 children and their families would benefit. It said the reductions meant the annual premium for a family of two adults and three children on plan B would now be €2,256 as against €2,556.
For a similar family on plan B options, the cost will fall from €2,760 to €2,400.
VHI chief executive Jimmy Tolan said the reduced premiums for children on plan B and plan B options would be funded through savings of €20 million the company expected to achieve through cost-containment initiatives including negotiations with providers of medical services such as private hospitals.
The company is expected to seek reductions of 3-5 per cent in consultant fees later in the year.
VHI Healthcare said yesterday it would write to all its members renewing their policies in April to advise them of the new rates.
The company said that it would also write to members who renewed their subscriptions between January and March this year to advise them of the reduction from the beginning of April. It said members renewing subscriptions at a later stage of the year would be advised of the revised pricing as their renewal falls due.
Last November, the VHI announced it was raising subscription rates for this year by an average 23 per cent.
Mr Tolan said the company had been listening to issues and concerns raised by parents in conversations with staff. “The reality is that families in Ireland are feeling the impacts of the deteriorating global economic environment and are experiencing changed financial circumstances. Despite this, many parents consider it very important to have the highest-quality health insurance cover in place for their families,” he said.
Commenting on the price announcement, Quinn-healthcare claimed it still provided better value for money for both individuals and families, citing a saving of up to €512 for two adults and three children when compared to the revised VHI prices.