71% OF PEOPLE NEVER CHANGE HEALTH PLAN OR INSURERS
SEVEN in ten families with private health cover have never switched provider, missing out on savings of around €400.
A study by the Health Insurance Authority (HIA) found 71% had never changed their insurer, and would want to save at least 22% off their insurance bill before they did.
The current average adult premium is now around €1,200 – meaning people would want to see a saving of €264 before they would switch.
A HIA spokesman said: ‘A family of four could save around €400 on average. Savings for an individual range a lot based on what they are paying at the moment – anything from €40 to €800/€1000+. Other people may find a plan for the same price but with improved cover.’
However, consumers are still not switching provider or plans even though three-quarters review their plans when their renewal is due.
The survey, carried out last October among 2,000 people, found that older people were more likely to stick with same provider.
The report says: ‘Among those with health insurance, the average length of time having their policy is 20 years, and the average length of time with their current provider is 15 years.
‘Almost 70% have no plans to change their cover when their renewal is due.
‘Almost a quarter of people – 22% – with health insurance are over 65 years old and those over 55 are paying significantly more, which is often due to being on the same policy for such a long period.’
HIA chief Ray Dolan said of the report: ‘The findings in relation to consumer inertia are interesting. In this regard, the HIA would always recommend shopping around. Consumers don’t necessarily have to change provider, switching between plans with the same providers is also an option. To compare plans and providers, consumers can visit our comparison tool at hia.ie.’
But many people are now switching plans after a recent flurry of price increases, according to Dermot Goode, of TotalHealthCover.ie.
He said: ‘Virtually every consumer of health insurance right now is shocked by the level of price increases.’