Irish Life Health is to increase its prices for the third time in less than 12 months and becomes the second private health insurance company to announce a price hike in less than a week.
Just six days after Laya Healthcare rolled out price increases averaging 4.5 per cent Irish Life Health said it would also impose an increase, amounting to an average of 3 per cent.
The move will impact around 500,000 customers with the price increases starting to take effect from October although individual customers will not be hit with the hike until their renewal date.
The price increase could see customers paying anywhere between €25 and €70 more per year with some families likely to be down by up to €185.
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For those stuck on dated plans, the increases could be much higher.
It is the third price increase the company has rolled out this year and comes on the back of a 3.7 per cent hike in January and one amounting to an average of 2 per cent announced in April.
The Health Insurance Authority said it had noted the price increase and said impacted consumers will be informed of any changes to their plan including any price or benefit changes in their renewal letter.
“We know that price increases are unwelcome, particularly during a time of rising living costs,” a spokesman said. “While insurers are free to set their prices based on commercial factors such as medical inflation and claims costs, affordability must remain a priority. Consumers may be able to find better value by shopping around and thinking about what benefits are most important to you.”
“Unfortunately for consumers, the trend of regular price hikes throughout the year is set to continue similar to what we experienced in 2023 and 2024,” said Dermot Goode of totalhealthcover.ie.
“Further price hikes are expected as all insurers prepare for the peak renewal period from October onwards when over half the market renews their cover.”
Mr Goode noted that not all plans especially those recently launched will be increasing.
“As with each increase in health insurance premium, members need to be wary of the average figures quoted,” he said. “In some cases, the actual increase could be much higher depending on the plan held. Members also need to bear in mind that the cumulative impact of all the increases since the last renewal will well exceed the 3% figure quoted for the latest price hike.
All insurers are blaming the rising volume and cost of claims for the continuous price hikes, especially those coming from the private hospital sector;
Mr Goode called on consumers to not “just accept these increases”.
He cautioned against allowing cover to auto-renew. “All members should contact their health insurer well before their renewal and challenge them to source similar cover at a lower premium. Don’t be afraid to disclose your budget for the coming year and have them fully explain the benefit differentials of any alternative plan you may be considering.”
