'Unfortunately for consumers, the trend of regular price hikes for private health insurance is set to continue'
A leading health insurance expert has said consumers should expect the trend of regular price hikes throughout the year is set to continue similar to what we experienced in 2023 and 2024.
Irish Life Health is to raise the cost of 99 of its plans by an average of 3 per cent from the start of October, in a move that could add €185 over a year to a family’s cost of cover.
Commenting on the news, Dermot Goode, Health Insurance Expert with Health Insurance Ireland
"As predicted, another health insurer has announced they’ll be introducing a further price increase from October. Irish Life Health have just announced an increase of 3 per cent average across most of their plans. This follows on from the Laya increase announced last week of 4.5 per cent average from the same date;
"Irish Life Health (ILH) already increased their rates by 3.7 per cent in January and by just under 2 per cent from April to cover the levy increase. A further 10 plans had another small increase from 1st July as well.
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"Unfortunately for consumers, the trend of regular price hikes throughout the year is set to continue similar to what we experienced in 2023 and 2024. Further price hikes are expected as all insurers prepare for the peak renewal period from October onwards when over half the market renews their cover (c. 1.25 million members);
"This latest increase from ILH could cost from €25 to €70 per adult depending on the plan held. For a typical family, it could add anything from €60 to €185 to their total bill. For those stuck on dated plans, the increases could be much higher. Our initial analysis shows that not all plans especially those recently launched will be increasing so consumers might escape this latest increase;
"As with each increase in health insurance premium, members need to be wary of the average figures quoted. In some cases, the actual increase could be much higher depending on the plan held. Members also need to bear in mind that the cumulative impact of all the increases since the last renewal will well exceed the 3 per cent figure quoted for the latest price hike."
All insurers are blaming the rising volume and cost of claims for the continuous price hikes, especially those coming from the private hospital sector.
Mr Goode said the advice to all consumers now is to never just accept these increases, i.e. don't allow your cover to auto-renew. "All members should contact their health insurer well before their renewal and challenge them to source similar cover at a lower premium. Don’t be afraid to disclose your budget for the coming year and have them fully explain the benefit differentials of any alternative plan you may be considering.
"There are numerous tactics available to consumers to help them avoid these premium increases whilst still maintaining excellent cover. This is especially relevant for those members on the same plan for 5 years or more or those paying more than €2,000 per adult. For those fearful of changing cover, seek expert advice from qualified brokers and let them do the work for you."