Health insurance firm VHI is to cut the cost of covering children and students on some of its hospital plans by 50 per cent, as competition in the market intensifies.

The price cut, which will apply to 61 of its plans, will be available between July 1st and October 31st for new and renewing customers, and could save families up to €413, according to the company.

“Families are still under ongoing financial pressures and what they want is the reassurance that a good quality health insurance policy brings but at a price that works for their budget,” VHI said.

Any customers renewing their policy before July 1st or after October 31st will not be entitled to the discount.

VHI has announced a number of increases to healthcare plans so far this year. Earlier this month, the health insurer annoucned it was increasing child premiums on Nurses Plan Select from May 8th. Premiums for children doubled from €143.75 to €287.50 per child

A growing number of adults have dropped their health insurance since the economic downturn began, with the most recent figures from the Health Insurance Authority on the market showing only 40 per cent of adults now hold a policy, compared with 49 per cent in 2007.

VHI remains the largest provider in the Irish market, but its share is being eroded by rivals such as Laya, which had 18 per cent of the market at the end of 2013, compared with VHI’s 55 per cent. Aviva, meanwhile, dropped from 19 per cent in 2011 to 17 per cent last year.

The Government’s plans for universal health insurance may also put pressure on the healthcare providers, compelling citizens to pay for private cover, but the plan has proved controversial.