Health insurer Vhi is to increase the average price of its plans by 6% from August 1st.

It said the price increase was necessary to ensure "the cost of the future healthcare needs of its customers in 2020 and beyond can be met".

Under the changes, customers on the HealthPlus Premium plan will pay €320 more per year.

While those on the HealthPlus Platinum plan will see no change.

In 2018, the company said it paid out €1.328bn in claims, and processed almost 1.2 million claims for 1.1 million customers.

Examples of Vhi price changes | Source: Vhi

Declan Moran is Vhi's director of marketing: "Vhi made a commitment to our customers that where we can, we will pass on any savings we make directly to them.

"We did this in 2017 and 2018 through three consecutive price reductions while also delivering enhanced benefits.

"Although we have announced price increases today, Vhi customers' average premium prices are still lower than in August 2017."

He also said that the increase is necessary due to medical inflation globally.

"Today's price increase reflects rising costs in hospitals, increases in consultants' fees, increased utilisation of medical services by our customers and the broadening range of innovative treatments and drugs available in healthcare today," he added.