Don’t be taken for a fool over health insurance
Think you have a good plan? Think again. Prices are tumbling, but watch out for pitfalls
This week the VHI announced more surprise price cuts on the health insurance it offers – the second series of reductions it offered this year. Other insurers have also cut prices on some plans and are expected to react to the VHI move with more cuts. So where do we stand in the health cover shake-up?
We don’t know yet what plans will be cut by the VHI (when they come in July) but it has moved ahead on price in at least two key categories of cover even at the old price (see tables).
Does the VHI now have a competitive edge at least on price?
‘They’re now right in the mix of all the other providers and are competing better than ever before,’ says health insurance expert Dermot Goode of the website totalhealthcover.ie
‘But you would need to look at a combination of price and benefits for each plan category before making a call on this. They each have something unique to offer,’ he said. Mr Goode urged people not to be complacent. It’s still imperative to review your cover.
Here are six things you need to know:
1. LOW-COST PLANS NOW LOOK COSTLY
Some 50,000 people wisely bought health cover in 2015 to avoid age loading that now kicks in after the age of 34. However, most never reviewed their cover since and are paying way over the odds.
‘Many younger members believe that because they joined an entry-level plan some years ago, there are no savings to be achieved,’ he says.
‘Think again – new plans are coming onstream almost monthly and other plans are being discounted from time to time, so people should always check the other options prior to renewal to ensure that potential savings are not being missed.’
Many newbies went with the following plans: Assure Vitality (Laya), Select (Irish Life) and One Plan Starter (VHI).
But they could now do better by moving to one of the following plans:
The cheaper plans offer a similar level of cover but check your details to make sure (see bottom of article).
With Laya, Goode recommends splitting the cover and putting the children on Flex 125 Choice where second and other kids go free.
This, along with the better prices of Assure Protect, would reduce the cost of cover by €306 for a family of four.
Irish Life attracted many newbies with its Select plan. However, Select Starter now offers much the same cover for €276 less.
Among the VHI’s most basic plans, the Start plan is cheaper than the One Plan Starter. However, not all public hospitals are covered on the latter.
2. YOU CAN DO BETTER THAN STARTER PLANS
The cheapest plans are recommended only if you can’t afford to pay more than the above prices. ‘These plans will only cover public hospitals, with minimum benefits included for everything else,’ said Goode.
‘However, if you want comprehensive cover for public and private hospitals such as the Beacon Hospital, Hermitage Clinic, Whitfield in Waterford etc., you need plans at the next level,’ he said.
The ones he recommends are:
3. VHI HAS CHEAPEST ‘BEST BUY’ DEAL
For a few hundred euros more, you could do even better in terms of
quality of cover. Some midrange plans will pay back fourfigure sums for routine medical expenses such as that all-important visit to your family doctor, the physio, dental care, optical care and many, may other routine expenses.
You can easily get hundreds of euro back if you play your cards right, and this, in turn, could more than pay for the difference in price between a very good mid-range plan and the ‘cheapies’.
Previously the VHI was in third place in terms of the prices it offers, charging €1,296 for its PMI0210 plan.
Now another VHI plan, PMI3513, is better value and is cheaper than Laya’s and Irish Life’s best offerings.
4. YOU HAVE 14 DAYS TO CANCEL Anyone who renewed and is in the 14-day cooling-off period can amend or cancel. If you haven’t reviewed your cover, do it now. And switch if necessary. 5. NO-PENALTY SWITCHING
Even if you have signed up for a new policy, you can switch to a new plan with Irish Life and Laya without penalty, as long as the cover is at the same level.
6. DON’T MAKE WAIVES
Next time you’re in hospital think twice before waiving your rights to get free public care. (See Consumer Eye).
To compare your plan check the Health Insurance Authority website, hia.ie, or call 1850 929 166 or (0)1 406 0080. NOTE: The VHI’s 2% price cut is scheduled for July. Prices above are at current levels.