According to experts at Lockton Insurance Brokers Ireland aside from rising health insurance rates, policyholders will be hit with additional changes that could significantly impact their coverage and costs.
Dermot Goode, Head of Healthcare Division with Lockton has highlighted a “triple threat” that will cause concern for consumers:
- rising premiums
- reduced benefits
- the retirement of old plans
“The culmination of these is likely to force thousands of policyholders to review their current plans and options”, advised Mr. Goode.
Sharp Premium Increases
While health insurers often cite average price increases, Lockton are warning that these averages do not fully reflect the true impact on individual plans. In some cases, specific plans are seeing price hikes 50pc higher than the quoted average.
"Consumers are overlooking the cumulative effect of multiple price increases throughout the year," said Mr. Goode.
"Depending on the plan, premiums could rise anywhere from 6% to 25%. For example, the Laya Momentum plan will see a 25% increase by October 2024, while VHI’s Advanced Care Extra plan will rise by 13%."
Example of Premium Increases:
- VHI’s Advanced Care Extra Day-to-Day: From €3,303 in October 2023 to €3,722 in October 2024 (a 13% cumulative increase).
- Laya’s Momentum: From €2,085 in October 2023 to €2,600 by October 2024 (a 25% increase).
- Irish Life Health's 4D Health 4: From €1,870 in July 2023 to €2,217 by July 2024 (a 19% increase).
Reduced Benefits and Higher Excesses
In addition to higher premiums, the health insurance expert is cautioning that many consumers will also face reduced benefits. Insurers have begun capping refunds for GP visits, consultant fees, and alternative therapies, while also increasing excesses for private hospital treatments.
Mr. Goode explained,
“VHI, for example, has capped GP visit refunds at €40, while Laya is increasing excesses on popular plans like Inspire Plus from €50 to €75 for day-case treatment. These changes mean that consumers will now have to pay more out of pocket for less coverage”.
Plan Retirements Forcing Consumers to Shop Around
Lockton say another major shift is the retirement of older plans. VHI retired the Plan B Option series in May, affecting about 150,000 customers, while Irish Life Health retired 24 plans in September.
Consumers impacted by these changes are being advised to carefully evaluate replacement options,
“When plans are retired, members shouldn’t just accept the first alternative offered. Many consumers may find better deals by shopping around or switching to more cost-effective corporate plans,” Mr. Goode advised.
“With so many changes on the horizon, we are urging consumers to seek expert advice before renewing their health insurance. It’s essential to review your cover and make sure it still meets your needs..”
