Irish Life Health denies deceiving customers with price cuts
IRISH Life Health has denied it is hoodwinking its customers after it announced price cuts on plans that have already gone up this year.
The Irish Independent has learned that two plans went up this month. The insurer now says the same plans are being reduced in price in March.
But they will still be more expensive than they were as recently as last month. The price movements emerged when Irish Life Health announced it was cutting prices on 11 plans from March 2.
It said there would be average reductions of 9.5pc on adult plans, with children’s pricing going down 14pc.
This comes a week after VHI announced it is cutting the cost of the majority of its plans.
It was the second time in three months VHI had announced a reduction in its premiums. Experts said the move would spark an all-out price war.
Irish Life said it had already cut prices this month.
Managing director Jim Dowdall denied it was hoodwinking customers by announcing cuts in the cost of plans that have gone up this month.
Research by this publication shows that Irish Life’s Health Plan 13 was €1,353 per adult in December. It rose by €213 in cost this month. From March it will be €1,432, which will be €79 dearer than it was in December.
Similarly, the Be Fit 2 plan went up this month, and is being reduced in price in two months. But it will still be €158 more expensive in March than it was in December, despite the latest price decrease.
Mr Dowdall insisted families would still be able to make big savings from the latest reductions.
Asked if raising prices, and then lowering them by a lesser amount, was not hoodwinking customers, he said: “Certainly not. Our focus is on better value for our customers and if we can reduce prices again we will do so.”
Mr Dowdall said Irish Life Health regularly reviews its prices and adjusts them based on claims levels. The latest move was not in response to the VHI cuts, he said.
He said the Select Starter, one of the most competitive plans in the market, would have an adult price of only €486 for new joiners, which is a saving of €322.60 annually for a family of four.
Dermot Goode, of TotalHealthCover.ie, warned consumers not to take announcements on price cuts at face value.
“People need to look at what they are being asked to pay this year versus what they were paying last year and if they are not happy they should look at other plans,” he said.