Health insurance premiums are heading north again but there are still ways to save
![Health insurance premiums are heading north again but there are still ways to save Health insurance premiums are heading north again but there are still ways to save](/cms_media/module_img/7719/3859915_6_articlesmall_iStock-1396601035.jpg)
The increase in premiums will cost families anywhere from €150 to €600 extra.
Irish Life Health announced this week that its premiums would rise by an average of 4.8% from January 1. A small number of plans will see no increase, while others will go up by between 2.5% and 6%.
When asked, Irish Life Health said the increase was due to “ongoing, increasing demand for healthcare services”.
The total level of claims paid by all insurers in 2022 increased by 16.5% on 2021. The amount paid out by insurers last year exceeded claims paid in 2019 (€2.25bn) for the first time since the pandemic, when claims numbers collapsed completely.
An Irish Life Health spokesperson said this rising trend was consistent with Ireland’s overall health insurance sector, “which reported seeing a considerable increase in activity across all services post-pandemic”.
Dermot Goode of Lockton, parent company of Totalhealthcover.ie, points out that we have seen a spate of increases this year from all private health insurers in the Irish market, and that this is Irish Life’s third premium rate rise in 12 months.
“This is yet another blow for health insurance members. The impact of the three rises means we are seeing some of the highest premium rate increases in 10 years. Most plans are now up between 10% and 15% on last year, which will cost families anywhere from €150 to €600 extra.”
Mr Goode said with more than a million people due to renew in the next three months, his strongest piece of advice would be that no one should simply auto-renew at renewal time.
Note too, that if you have already renewed your cover, these hikes will not impact you until next year.
Meanwhile, the Health Insurance Authority (HIA) has just published its 2022 annual report. It found health insurance coverage continues to grow, with 47.6% of people in Ireland holding health insurance, a 3% increase on 2021.
Vhi Healthcare continues as the largest health insurance provider in Ireland, with a market share of 48.4%. Laya Healthcare has a 27% market share and Irish Life Health has 20.5%.
It is interesting to note market shares vary significantly depending on the ages of the insured. At the end of 2022, Vhi Healthcare insured 54% of those with insurance aged between 70 and 79, compared to 72% at the end of 2014.
Feedback from consumer surveys commissioned by the HIA during 2022 showed many consumers still find it difficult to understand their health insurance plans and compare options, particularly with over 327 plans on the market.
![Dermot Goode: 'Strongest piece of advice would be that no one should simply auto-renew at renewal time.' Dermot Goode: 'Strongest piece of advice would be that no one should simply auto-renew at renewal time.'](https://www.irishexaminer.com/cms_media/module_img/7719/3859918_6_articleinline_Dermot_20Goode_20pic_202014.jpg)
“Last year, we received over 3,000 calls to our consumer helpline, and almost 200, 000 consumers used the HIA’s comparison tool at hia.ie," said HIA chairperson Patricia Byron.
"We encourage all consumers to assess their level of coverage each year and compare products available”.
If you are facing price hikes and are considering downgrading your cover, first, take a look at the marketplace. If you have been on the same plan for years, chances are you are paying well over the odds for health insurance. Shop around.
Downgrading your cover is also an option of course, but if you are considering this, make sure that the savings are worth it, and try to think long term. Would a lower level of cover really suit your needs?
You also need to be aware of waiting periods. If you already have cover and are not changing level of coverage, and have completed a waiting period, then there will be no new waiting periods if you change to a different insurer.
For any other inpatient cover, if you are upgrading and you have a pre-existing condition, you will have a two-year waiting period for the higher level of cover.
For example, if you are going from 90% cardiac cover to full cover, the difference will be subject to a two-year upgrade rule. If you are upgrading and you do not have a pre-existing condition that would relate to the higher level of cover, you will get the higher level of cover right away.
If you have not had life insurance before, you need to be aware of something called ‘Lifetime Community Rating’. Since May 1, 2015, a loading of 2% on premiums applies to anyone aged 35 who takes out insurance for the first time. A further 2% loading applies for every year after that.
For example, if you take out a private health insurance policy for the first time at age 40, you will pay an additional 12% on your annual premium every year. You will only pay this additional loading premium for a maximum of 10 years.
Before you go shopping for a new insurer, the HIA advises the first thing you should do is set a budget. Then look into the costs per person. Don’t think in terms of family plans.
Adults, young adults and children can, and probably should, be on different plans. Adult policies will be more expensive than child policies and some plans have discounted rates for young adults aged 18-25. If you have children, check to see if insurers have any offers such as free cover for one child or half price for children.
Next, prioritise your needs. Decide if you want treatment in a public or private hospital. Do you want access to the hi-tech hospitals, like the Blackrock Clinic, the Mater Private, and the Beacon Hospital? Make sure the hospitals you need are covered.
If you have used your health insurance in the past, take your cue from how you have used it. Routine treatments are usually fully covered in standard private hospitals. However, you may have to increase your premium to ensure full cover for treatments such as orthopaedic, ophthalmic and cardiac procedures. Are you prepared to pay a higher premium for outpatient benefits such as GP, physio and consultant costs?
The HIA is a great source of free and independent information about private health insurance. Its role is to increase awareness about health insurance services and related consumer rights.
Its website, hia.ie has a raft of information and a handy comparison tool which allows you to measure policies against each other in order to find the best fit for you. You can also call the consumer helpline on 0818 929 166 to find out about the health insurance options available to you.