Whisper it ... health insurers did a nice thing!

Our health system has been upended to protect us against Covid-19, and major insurers are, rightly, handing back cash

We’re all braced for ‘the surge’ of Covid19 in the worst health and economic crisis for a century. The nation badly needed a lift: some good news or another example someone doing the right thing to help us all get through this.

And it came late this week, from an unusual if not totally unexpected source... our three main health insurers.

Laya, Irish Life and the VHI have announced that they will give back money to customers, in some cases hundreds of euro – just when they need it most.

‘These pro-rata reductions are probably at the higher-end of what was expected,’ said Dermot Goode of Totalhealthcover.ie, who welcomed the move.

The VHI and Laya also extended many benefits that are normally reserved for high-end policies.

The moves come after the HSE took over private hospitals for public care, which effectively suspends much of the benefits of private health cover for at least three months.

‘We understand that if the temporary arrangement between the HSE and certain private hospitals is extended, that the [health] insurers will continue extending these terms,’ advised Mr Goode.

The health insurers can do this because they are saving millions on claims, but then so too are other types of insurers who have so far raked in the profits without doing much to help their customers through this crisis.

These health cover rebates over the next three months will help members to hang in there through the worst health and financial crisis in a century.

‘For “distressed customers” who may still struggle to pay their premium over the coming months, they should engage with their broker or their health insurer immediately as there are a number of measures on offer which they could help them during this period,’ Mr Goode advised. ‘Our advice is to consider all cost-reduction tactics first before you cancel.’

At a meeting with Insurance Ireland on Friday, Finance Minister Paschal Donohoe encouraged motor insurers to follow the lead of their health counterparts in refunding money to customers.

Afterwards, the association, which represents general Irish insurers, said: “We listened to the minister’s views regarding the potential for motor insurance rebates and we have committed to examining this issue fully with our members and to respond constructively.”

Last week, Insurance Ireland announced forbearance measures for business customers including reduced premiums to reflect the reduced level of exposure as a result of Covid-19 restrictions.

Measures announced for personal customers include flexibility when in financial distress; no cancellation fees or missed direct debit fees; extension of cover for home working; extension of cover for volunteer driving; and priority for HSE staff.

The AA (Automobile Association) also called on motor insurers to “at least look into the idea of partial refunds. While your car insurance covers incidents of fire and theft as well as accident claims, it’s likely that claims across all these types of incident are down given the significant reductions in car use.”

How much money and extra benefits will you get?

VHI

Lower level plans will see a 45 per cent reduction.

Many of the higher cost plans will see a 50% reduction with up to 60 per cent applying for some of the top plans.

Totalhealthcover.ie gave a brief estimate of what this means:

• For mid-level plans such as One

Plan Family, this could mean a saving of around €140 per adult and €28 per child;

• For the likes of Health Plus Access (old Plan B), the saving could be closer to €270 per adult;

• It could even be up to €450 for members on the Health Plus Premium scheme (as there is a 60 per cent reduction here).

As many dental practices remain closed for non-emergency business, VHI will also be waiving 30 per cent of the premium for VHI Dental Insurance for the same period.

In addition, VHI is extending day-to-day benefits to include: telephone or online consultations with GP’s, clinical psychologists, physiotherapists, dieticians, and practice nurses, physical therapists, occupational therapists, speech and language therapists and EAP consultations.

For more details check vhi.ie.

LAYA HEALTHCARE

Laya will pay back €195 for every adult member and €60 for every child member. For a family of two adults plus two children, that’s a total of €510. This will apply to every member irrespective of the plan they hold.

‘The total payment will be split into three equal instalments and paid over three months (April to

June 2020). We will pay the first instalment by the 30th of April 2020,’ the insurer said.

‘Members must have a current active policy on the 1st of each of each month – April, May, June – to qualify for the monthly instalment.’

Laya also announced (subject to fair usage) that it will provide unrestricted access for all members for three months to:

1. Video consultations with GPs and physios;

2. One-to-one video consultations with health and wellbeing experts covering parenting, financial and nutrition advice;

3. Specialist clinical remote monitoring of members with Covid-19 symptoms;

4. Online Healthcoach consultations for members aged 18plus.

‘More people are at home with their movements restricted, which makes keeping fit and healthy a real challenge,’ Laya said. ‘To help, we’re bringing our team of health and wellbeing experts to them at home, providing video consultations and tailored health and fitness plans that members can safely do indoors or within 2km of where they live.’

Laya will also pay the full cost for members to access urgent care consultations and treatment for minor injuries in Laya Health and Wellbeing Clinics.

‘Clinic doctors in our Health & Wellbeing Clinics are also providing video consultations for non-Covid-19 related minor illnesses including upset stomach, kidney infections, skin and eye issues,’ Laya said.

For more information, go to layahealthcare.ie.

IRISH LIFE HEALTH

What Irish Life Health customers will get depends on their plans.

Customers with high-end plans will get 36-60 per cent of their monthly premium back.

People on cheaper plans that offer largely public hospital cover would get back less – around 17-21 per cent.

The reduction will be applied retrospectively to premiums paid by customers for three months starting from and including April.

We had not received details of further benefits from Irish Life Health as we went to press. That does not mean they won’t follow Laya and the Vhi in extending high-end benefits to cheaper plans at some point.

For more information, see irishlifehealth.ie.

It is worth noting insurers are asking customers to check their websites for information first before ringing in as helplines are under enormous pressure.