People are being urged to shop around as the VHI is to discontinue some of its oldest plans.
The insurer is to withdraw its Health Plus Extra, Health Plus Access, Health Plus Excess and Health Access plans.
The plans will no longer be available to new members or for renewals from May 1st.
Health insurance expert at TotalHealthCover.ie Dermot Goode told The Pat Kenny Show up to 150,000 people will be affected.
"Some of these are on the market over 30 years and... they've started over the last two or three years simplifying their plans," he said.
"They have other plans that are very similar, so not surprisingly VHI has now decided to retire these plans.
"It's going to affect anything from 100,000 to 150,000 members - they're starting to do this from the 1st of May.
"They'll be phased out on a renewal basis; so in other words, if you've already renewed [in] January, February, March this won't affect you until next year".
'Alternatives'
Mr Goode said the change is likely to affect some of the insurer's oldest customers.
"These are some of the oldest plans which means it's the older members who stayed on these plans for various reasons," he said.
"These people will have no choice now but to shop around.
"The good news is they will be offered alternatives by VHI and some of those alternatives are in and around the same price.
"Some of the people on Health Plus Extra may have to pay maybe another €100 to keep something similar in place".
'Really good savings'
Mr Goode said said instead of just accepting the VHI's new offer people should take the opportunity to look 'across the market'.
"There are equivalent plans available from the other insurers, in particular Laya Healthcare, and you may be able to acquire the cover you need but also bag some really good savings.
"Now is the time but people need to aware of this change".
He said people on the soon-to-be-defunct plans will be offered variations of another VHI plan known as Advanced Care.
"In fairness to the VHI those plans are still very good in terms of benefits, some extra benefits and the pricing will be similar," Mr Goode said.
"I would be concerned about the people on Health Plus Extra - the old Plan B options.
"That plan on its own went up by 15% already in the last 12 months; it was €2,950, it's now €3,400".
'Huge amount of money'
Mr Goode said the alternative VHI offering will set people back even more.
"VHI are going to offer those members two alternatives: one is called Advanced Care Extra and the other is called Advanced Care Extra Day-to-Day," he said,
"They range in price from €3,300 to €3,540 - it's a huge amount of money.
"I would say to those people if they go to the market there are other plans that are similar that are around €2,400.
"Those savings are definitely there".
'No break in cover'
Mr Goode said switching is easier than some people think.
"If they're worried about making the wrong decision or losing any element of cover there are loads of brokers, get a family friend, a son or daughter to sit down with you and go through it with you," he said.
"You might be shocked at the savings".
He said people get full credit for their time with the VHI and will be taken on by another insurer "with no break in cover whatsoever".
A VHI sign on its offices in Dublin city, 8-1-12. Image: Sam Boal/Photocall IrelandMr Goode said people should tell a perspective insurer all relevant information such as their current plan, any underlying conditions, what hospitals they are attending as well as pending procedures.
"There will be some differences, for example if you switch from VHI you can't access their Swiftcare clinics anymore," he said.
"But you can use the Affidea clinics or Laya have their Quickcare clinics".
He added that anyone with underlying psychiatric conditions on VHI Health Plus Extra is currently entitled to 180 days of inpatient treatment.
Most other plans only cover 100 days.
