Aviva Health is increasing its prices by an average of almost 13%. The hikes are set to come into effect from March 23rd. It is blaming new public bed charges in hospitals, the increase in the risk equalisation levy and a rise in claims costs.

The company is calling on the government to introduce lifetime community rating, to stop younger people leaving the health insurance market because of rising premiums.

It is the second price rise by the company this year and will mean an extra €760 in annual costs for a typical family.

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" she added.

Personal Finance Editor with the Irish Independent Charlie Weston says Aviva is blaming the government for the hike.

Last month, the Health Minister urged firms planning health insurance rises to work keep the cost of private health insurance down.

James Reilly criticised rises by health insurers Laya Healthcare and Glohealth at the time, saying he was "very disappointed" and that he does not believe they were justified.