Health insurance premiums could rise “in weeks” despite pledges that hikes are not planned, experts warned.
Some analysts urged people not to accept providers’ quotes, saying they should shop around. The alert came after Irish Life said it is raising its health cover prices for the second time this year.
VHI added it “currently has no plans for a price increase” and Laya Healthcare it will “closely monitor healthcare costs and trends”. But Daragh Cassidy, of comparison site Bonkers.ie, warned of eventual price increases. He told the Irish Mirror: “They are all affected by the same cost pressures. It could be just a matter of weeks before the others hike their premiums as well.”
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Dermot Goode, of Total Health Cover, has also warned price increases are in the pipeline. He told customers: “Don’t accept these price hikes without completing a full review of your options. There are over 330 plans to choose from and those who shop around properly can usually manage to keep their costs affordable whilst still maintaining quality cover. After a period of relative price stability for health insurance, we’re returning to the days of potentially double-digit price hikes which will be unaffordable for many.”
When VHI group announced in April a strong financial performance for 2022, it also warned claims had increased by 10 per cent. A spokesman said: “Gross earned premium for private health insurance in 2022 was €1.6billion up from €1.589 billion in 2021. Total claims paid in 2022 amounted to €1.425billion.”
Mr Goode said: “Those renewing on or after July 1 will also be hit by the January increase, so their actual year-on-year increase could be double these figures. VHI and Laya have also increased their rates in 2023. VHI increased by an average 4.8% on March 1 and Laya by average 4.4% on April 1.
“We assume they will move their rates again later in the year, assuming they’re affected by the same cost drivers as Irish Life Health.” The Health Insurance Authority last November also urged people to review their health policy before agreeing to renew. It said 2.4 million people now have private health insurance and average adult premiums are priced at €1,412.
According to HIA, VHI has the largest market share at 48.5%, followed by Laya Healthcare at 27.6% and Irish Life Health at 20.5%. Meanwhile, Bank of Ireland revealed inflation and the cost of living remains the top concern for its customers.
Its Savings and Investment Index for the quarter reported: “One in three cited inflation as their top concern, up from 26% in Q4 2022.” The index tracks household attitudes to savings and investment. The bank’s chief investment strategist Kevin Quinn said: “While inflation has been falling since November, and market expectations are it will fall to somewhere close to 3% and 4% by this time next year, this has done little to ease the concern.”
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