Aviva Health Insurance has announced price hikes.

The insurer says it 'greatly regrets' the move which its blaming on changes to government policy concerning public bed charges and an increase in the cost of claims because of the age profile of its customers.

The increase will average 5.2% on a range of its private health insurance policies and comes into effect on January 1st next.

However Aviva says it is also reducing the cost of its Health Value Plan by 8%, and will not implement any price hike on some of its newer entry level policies.

"Last Friday evening, the government informed health insurers of its decision to not to reduce the rates set out in legislation passed by the Oireachtas last July which allows privately insured patients to be charged for the use of a public bed in a public hospital" the firm said in a statement.

"This means that from the 1st of January next, our customers will be charged up to €813 per night when they occupy a public bed in a public hospital. The current charge is €75 per night. This new charge directly increases the cost of providing cover for our members" it added.

Aviva CEO Alison Burns said "Recent government policy changes have severely disrupted the health insurance market and their impact on customer behaviour remains to be seen".