Vhi subscribers are facing an average price increase of 8.5 per cent for health insurance cover from September.
The company will notify the increase to Minister for Health Mary Harney and it is expected to come into force for its 1.5 million subscribers within weeks. The increase will add an extra €52 per annum to the cost of a person with a standard Plan B policy.
The announcement comes as the Vhi announced today it made a profit of €70.3 million in the 12 months to the end of February on the back of over €1 billion in premium income.
This compares to a loss of €32.3 million for the previous year.
Vincent Sheridan, ceo of Vhi said the increase in premium costs was to meet the rising costs of paying for the "most up to date technologies and treatments."
The Vhi has 1.57 members and paid out over €930 million to settle 555,0000 claims and 1.36 million invoices from doctors last year .
Mr Sheridan said last year had been a strong one for the company. "Our return to surplus has given us a very solid foundation on which to build for the challenges of the future, including our commitment to work with the Government regarding the removal of the derogation from solvency."
"There are many industry wide challenges ahead including rising health costs, rapid growth of new private facilities, regulatory reform and changes to the corporate status of Vhi Healthcare.
Mr Sheridan added that it remained a "matter of concern that no transfers have yet been received from the Risk Equalisation Fund."
VHI subscriptions have risen by about 25 per cent over the last two years.
