Now families hit with further rising health insurance costs

HEALTH insurer Laya is raising its premiums for the second time this year, with some plans increasing by up to €284 for a family of two adults and three children.

It comes after both VHI and Irish Life Health recently raised their prices, and Irish Life is also reported to be planning further rises next month.

Industry experts say the pandemic has prompted thousands of people to take out private health insurance over fears they will not get treated in public hospitals due to surging waiting lists.

Customers of Laya Healthcare, which is the second largest provider of health insurance, will see their annual bills rise by an average of 2.3% from June.

Laya blamed the rise on the volume and cost of claims in Ireland’s private and hi-tech hospitals.

It said activity levels are now almost back to pre-pandemic levels.

In January, its premiums went up by an average of 2.9%, with a few plans seeing their price soar by more than 10%.

Barbara Sheahan, managing director of health insurance brokers HCC.ie, said a family of two adults and three children on a mid-level plan could see an extra €284 per annum added to their health insurance bill at renewal.

She believes private health insurance customers should shop around. With over 320 plans available on the market, she said there were many alternatives available from Laya, Irish Life Health and VHI.

‘We strongly advise anyone coming up to renewal over the coming months to start reviewing their options now to ensure their plan is providing the best value for money.’

Dermot Goode of Totalhealthcover.ie said some plans will increase by double the average 2.3% in June.

‘Once one insurer moves on rates, all follow suit,’ he said.

Anyone already signed up to a plan will not be affected by the latest announcement until it is time to renew.