Aviva Health Insurance announced today that it is increasing its premiums by an average of 4% (0% to 6.4%1) on a range of plans effective from 31st March 2013. There is to be no premium increase on many of its plans.

Aviva regrets this increase which is due to the impact of legislative changes coupled with the rising cost of claims. Legislation recently approved by the Oireachtas raised the health insurance levy by up to 26.3%. The cost of claims paid by Aviva increased by 29% in 2012 compared to 2011. Claims costs for some treatments have seen significant increases. For example radiotherapy and chemotherapy claims have increased by 37.5%, while the cost of non-surgical admissions claims have increased by 48.3%.

Recognising the importance of keeping health insurance affordable, the Company’s Managing Director, Alison Burns, said:

“We are acutely aware that many customers are struggling to meet the cost of their health insurance. That is why we have minimised increases on all plans and there are no increases on many of our entry level plans.”

Alison Burns added:

“Our priority is to continue to offer a wide choice of affordable products which give our customers and their families fast access to quality treatment and peace of mind.”

In addition, under the new legislation which comes into effect from 31st March 2013, every health insurance plan in Ireland must be categorised as either ‘advanced’ or ‘non-advanced’ according to its level of private hospital cover. Plans in the advanced category have a levy of €350 while non-advanced plans attract a levy of €290. To comply with this legislation and continue to offer affordable options, changes to some benefits on our entry level plans are required.

“It is very important to us that our customers can make informed choices about the best plans to suit their needs and budgets. We are offering choice; they can choose to either stay on a cheaper non-advanced plan or upgrade their cover for as little as €3.60 extra6 per month per adult,” concluded Mrs Burns.

Aviva Health Insurance is directly communicating these changes to the relevant members in their renewal letters and informing customers about the range of alternative competitive plans available to suit customers’ needs and budgets.