IRISH LIFE HEALTH will increase premiums by an average of 5% from January, increasing pressure on many households’ budgets next year.
The price rise will apply to all customers who renew their policies next year, and to new customers.
It’s the latest in a number of price hikes for health insurance policyholders. Irish Life Health already applied increases from October, as did Laya and VHI.
The Health Insurance Authority – the sector’s regulator – responded to this morning’s announcement by urging consumers to shop around.
Irish Life Health said it has to increase its prices because the cost of providing healthcare is going up.
It said that’s due to more advanced treatments being provided in specialised facilities.
‘Difficult time’ for households
A family of two adults and two kids on Irish Life Health’s MyPlan 350 policy will pay an extra €112 after the new hike is applied. That will bring the total cost of the plan to €2,706.60 next year.
Ann Marie Nestor, the insurer’s managing director, said she was “acutely aware” that the upcoming increase comes at a “difficult time for many households”.
Nestor said Irish Life Health offered a broad range of plans to meet different budgets.
The Health Insurance Authority (HIA) said the price rise would be unwelcome at a time of rising living costs – and particularly given the earlier increase just last month.
“While insurers set prices based on factors such as medical inflation and claims costs, affordability must remain a priority,” the HIA said.
“Consumers may find better value by shopping around and focusing on the benefits most important to them.”
Tips for cheaper insurance
The HIA urged people to review their plan each year and use its comparison tool to find the best value for what they need.
Older plans can be less value than newer ones, the HIA said.
Increasing hospital excess if you’re in good health can also help to reduce premiums.
If you have a medical card, paying for lower day-to-day cover can also help to save money, as these are benefits you’re less likely to use.
The HIA added that Irish Life Health will send its customers updated prices and benefits before renewal, and it urged customers to review their options carefully.
