Almost 1.25 million health insurance members are due to renew their policies between now and the end of February, with consumers being urged to review their cover carefully as further premium increases and reductions in benefits put additional pressure on household budgets.
Nearly 500,000 members are expected to renew their health insurance in January alone, making the coming months one of the busiest periods of the year for the industry.
According to health insurance expert and Director of Health Insurance Ireland, Dermot Goode, many consumers are paying significantly more than necessary by remaining on older health insurance plans, despite the availability of comparable cover at a lower cost.
Some of these plans have been on the market for 10 to 20 years and have been subject to successive premium increases. A further 10% increase on certain plans could add between €300 and €500 per adult to the annual cost of cover.
Consumers are also being warned to check for changes to their existing benefits, particularly Laya Healthcare members who may be affected by increased co-payments for major orthopaedic and ophthalmic procedures on a number of popular plans.
Dermot Goode, Director of Health Insurance Ireland, said:
“Too many people are paying far more than they need to for their health insurance because they have stayed on the same plan for years. Some of these older plans still provide very good cover, but there are now alternatives that could offer similar benefits at a significantly lower cost.
Fear of losing benefits, confusion about the options available and, renewing out of habit are some of the main reasons people remain on expensive plans.
What many consumers don't realise is that they may be able to make substantial savings without changing insurer. In some cases, one phone call could save them hundreds of euro on their annual premium”.
Mr Goode said consumers should also be aware that switching health insurers does not automatically mean losing cover for existing medical conditions or facing additional age-related loadings.
“Some people are afraid to switch insurers because they think they’ll lose cover for existing medical conditions or face extra charges because of their age. But that's generally not the case. As long as there’s no break in cover, your previous years of health insurance are recognised when you switch. You should still check that your new plan gives you the benefits you need, but fear of switching shouldn't stop you from looking for a better deal”.
Older health insurance plans that consumers should review
Health Insurance Ireland has identified a range of plans across the four insurers that consumers should review carefully before their next renewal.
While these plans may provide comprehensive benefits, there could be more competitively priced alternatives available, including from the same insurer.
Laya Healthcare
Plans that warrant review include:
- Company Care No Excess (€4,962), Company Care Excess (€4,268), Company Health Plus (€4,922), Company Health Explore (€4,897) and Company Care Premium (€6,108).
- Company Care Plus (€5,254), Complete Simplicity (€4,301), Total Health Select (€5,252), Essential Plus Excess (€5,269) and Essential Plus (€6,139).
- Higher-priced plans including Company Care Gold (€9,427), Empower 150 Secure (€7,491) and Empower Secure (€8,031).
- Simply Connect Plus (€3,229) and plans beginning with 'Flex 125'.
Members whose orthopaedic benefits have been reduced should also review their options before renewing, particularly where access to certain procedures is a priority.
Irish Life Health
Plans that consumers should consider reviewing include:
- Business Plan Complete (€5,404), Business Plan Extra (€5,050) and Business Plan Select (€4,281).
- Optimise Silver (€7,288), Optimise Gold (€9,489) and Optimise Platinum (€11,638).
- Level 2 Hospital (€5,233), Level 2 Complete Health (€6,565) and Level 2 Family Health (€4,438).
- Health Plan 02 (€4,446), Health Plan 08 (€4,503) and Health Plan 09 (€8,973).
- Best Ultimate 2 (€3,519) and Hospital Focus (€4,074).
Members insured on plans beginning with '4D Health' should also consider the insurer's newer Health Guide and Health Action ranges.
VHI Healthcare
Although VHI has retired many older schemes, several plans remain worth reviewing, including:
- Advanced Care Extra (€3,981) and Advanced Care Extra Day to Day (€4,171).
- Provident Care Plus (€4,019), Company Plan Extra Level 2 (€2,939) and Company Plan Extra Level 2 Excess (€2,683).
- Premium Care (€5,768), Premium Care Select (€5,399) and Company Plan Executive (€5,217).
Members on higher-priced plans who do not require full access to high-tech hospitals may have opportunities to reduce their premiums.
Consumers insured on VHI’s PMI schemes should also explore the alternative options available within this range.
Level Health
As a relatively recent entrant to the Irish health insurance market, Level Health offers a smaller range of plans designed around different consumer needs.
Members on its higher-priced Plan E (€5,050) should review their options if full cover for Dublin's high-tech hospitals is not a priority.
Consumers could be paying more for reduced benefits
Mr Goode warned that remaining on the same policy for several years could result in consumers paying substantially more while receiving fewer benefits.
“A lot of people assume that being on a corporate health insurance plan means they’re getting good value, but that isn’t always the case. Some of the most expensive plans on the market are older corporate schemes. If you’ve been on the same plan for five years or more, or you’re paying over €3,000 per adult, it’s well worth checking whether you could get similar cover for less.
We’re also seeing changes to benefits that could leave people facing much bigger bills for certain procedures. For example, some insurers are increasing the amount members have to pay towards certain orthopaedic procedures to 40%, when there may be other plans available that keep this at 20%.
That could leave someone facing a much bigger bill if they need surgery, even though they may be paying more for their health insurance than they were last year”.
Six ways to reduce your health insurance costs
Health Insurance Ireland is advising consumers to take the following steps before renewing:
- Contact your existing insurer first. Ask whether there is another plan offering similar benefits at a lower price. Explain your budget and ask the insurer to compare any suggested alternative with your current cover.
- Consider a small excess. Agreeing to pay a modest amount towards a hospital claim could deliver worthwhile savings on annual premiums, depending on the plan.
- Review your level of hospital cover. Consumers who do not require full access to high-tech hospitals or certain accommodation benefits may be able to reduce their premiums.
- Check outpatient benefits and family discounts. Review whether you are paying for benefits you are unlikely to use and ask about discounted children's premiums. Splitting family members across different plans may also deliver savings.
- Explore newer corporate plans. Corporate health insurance schemes are available to all consumers, regardless of their occupation or age. Options worth considering include VHI's PMI range, Laya's Inspire plans, Irish Life Health's Health Action range and Level Health's Plan Pro schemes.
- Compare other insurers. If your existing insurer cannot offer a suitable alternative, contact the other providers. Ask for a clear explanation of any differences in hospital access, excesses, co-payments and other benefits before switching.
Mr Goode said that consumers who find the process difficult should consider asking a trusted family member or friend to help them compare their options.
He also advised those seeking independent assistance to check that their broker specialises in health insurance, compares plans across all insurers and clearly explains how they are paid.
'Never simply auto-renew your cover'
With more than 325 health insurance plans available in the Irish market, Mr Goode said consumers should begin reviewing their options well ahead of their renewal date, particularly those due to renew in December or January when insurers can be difficult to contact.
“My advice is to start looking at your options well before your renewal date and never just automatically renew your cover. Even if you're happy with your current insurer, give them a call and ask what other plans they have available. Tell them what you can afford and what cover you need, and get them to explain how any alternative compares to your existing plan.
You could save hundreds of euro just by making that one phone call, so it's well worth taking the time to see what else is available”.
