Customers of Irish Life Health are to be hit with price increases averaging 5 per cent from the beginning of July.
The increase, which is the second to be rolled out by the company since the start of the year, will see some family policies climb by between €160 and €220 and could mark a return to double-digit price hikes, according to one health insurance expert.
It will impact Irish Life Health customers renewing their polices from July 1st, and when the latest increase is added to the earlier price rise it could see the cost of some family policies climb by over €400.
The company said it was increasing its premiums as a result of “a very significant increase in the volume and size of claims”.
‘I want out of this marriage, but feel like I am trapped’
‘Is that your wife? You should be ashamed’: a charity collector’s anti-immigrant hate in south Dublin
From screentime to dinner time: how parents can improve family life, diet and relationships
More people avoiding healthcare amid costs and pressure on the system
It said that post-pandemic, “there has been a considerable ramp-up in activity across all public and private health services, with private and high-tech hospitals returning to full service and many much-needed procedures that had been deferred during the pandemic now taking place. The level of claims in 2022 from private and high-tech hospitals is the highest seen since the inception of Irish Life Health in 2016”.
It also pointed to a “general inflationary environment seen in the economy” and said that “substantial medical and general inflation has materialised over the last three years in the form of higher hospital costs and consultant fees.
The company also said there were increased requirements for high-cost pharmaceuticals to deliver the best health outcomes for patients.
VHI and Laya have also increased their rates this year with the former increasing the average annual policy by an average of 4.8 per cent in March, and the latter upping its prices by an average of 4.4 per cent in April.
“We can only assume that they will move on their rates again later in the year assuming they’re affected by the same cost drivers [claims] as Irish Life Health,” said Dermott Goode of Total Health 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 households,” he said
He said that the main reason for both of these increases has been the high level of claims being received. In particular, the latest price hike seems to be driven by a significant increase in claims coming through private and high-tech hospitals.
“When looking at this, customers need to be mindful ... that the impact on their premium could actually be higher than the average increases quoted. We understand that some of the lower-level schemes will be increasing by 1 to 2 per cent, some of the newer plans by around 2 to 3 per cent, but most schemes by an average of 5 per cent,” Mr Goode noted.
“These hikes could force people to reconsider the need for private cover (especially younger members). It could also force those who are using their cover to take on more risk in the form of higher policy excesses or reduced overall cover in an effort to keep the cost affordable.”
Mr Goode said that for hard-pressed consumers “who will struggle to absorb these latest increases, there is no real alternative to private cover as the public system continues to struggle with waiting lists”.
He cautioned people against auto renewing policies. and not to “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.”
Irish Life Health managing director Ger Davis said the company was “acutely aware of the impact increasing premiums will have on our customers. We recognise that these changes will be difficult for customers who have recently experienced significant price increases across many areas”.
He said the company had tried to keep the increases “as low as possible in the context of the increased cost of providing the healthcare that our customers are accessing.
“As pent-up demand for medical services makes its way through a more normalised health system, the volume of claims is higher than previously anticipated.”