Irish Life Health blames increased demand for third hike in premiums over ten months
HARD- pressed families are being urged to shop around for health insurance after Irish Life hiked its premiums yet again.
This is the third time since July of last year that Irish Life Health has increased the cost of its various plans.
The average premium is going up by 5.3% but the provider said the price increase across a various range of plans will rise by between 1.6% and 7.9%.
Consumer experts have predicted that the increase will cost a family of two adults and two children between €242 and €630 a year.
These price changes will apply to new customers from July 1 and existing customers whose renewal is due from that date. A statement from Irish Life Health said the company made the decision ‘due to the ongoing, increasing demand for healthcare right across both public and private hospitals’.
‘This has resulted in the very significant and continued increase in the volume and size of claims. This trend is particularly noticeable from private and high-tech hospitals for health care provided to our customers,’ the statement added.
Irish Life boss Ger Davis said it was ‘regrettably necessary’ to hike premiums.
‘We are acutely aware of the impact a price increase can have on customers and we are keen to support them in finding an appropriate level of cover that suits their budget,’ he added.
Consumer experts have urged people to look around to get the best value on a plan that is suited to them.
Dermot Goode, leading health insurance consultant with the Lockton Group, said consumers need to be wary of the average figures used as their increase could be significantly higher.
‘They also need to consider the cumulative impact of more than one increase since their last renewal date. As with the other insurers, the main drivers for these increases is the cost of claims, especially from the private hospital sector,’ he said.
Mr Goode also warned people to expect more significant increases in the near future.
He said: ‘VHI and Laya have already introduced increases of 7% average from March and April respectively in 2024.
‘ILH [Irish Life Health] still appear to be offering the lowest cost cover in the market on their First Cover scheme (entry-level plan).
‘All consumers need to brace themselves for double-digit increases in 2024 similar to what happened in 2023. New plans are being launched all the time so those who take the time to shop around will always find the best deals. We are expecting further increases later in the year possibly from October onwards.
‘This latest increase means that all consumers must now shop around for better value come their renewal. If in doubt as to the best option to suit your needs, seek independent advice.’
In February, the Health Insurance Authority (HIA) was informed of an increase in price by Laya Healthcare of an average of 7% across the company’s plans with effect from April 1 this year.
The HIA, as the State regulator for private health insurance, is notified of price and policy changes in advance of the insurer making any such changes.
The insurers are obliged to give 30 days’ notice to the HIA of any such changes.
‘The private health insurance market in Ireland gives discretion to health insurers to set the prices for their policies’ the HIA said at the time. It added: ‘These prices are ultimately based on the cost of the claims that the insurers receive. If the number of claims or the cost of healthcare increases, prices can also increase.’
Ray Dolan, chief executive of the HIA, said: ‘We would always encourage consumers to review their policy each year at their renewal date to ensure that their policy fits their health needs and budget. Consumers can use the free comparison tool on our website, www.hia.ie, to find the best policy for them.’
‘Regrettably necessary’
‘Take the time to shop around’