- Be wary of the Average Figures quoted
- Consider the Cumulative Impact of multiple price hikes coming your way
- For Laya members, check for the latest Benefit Changes across multiple plans
- What to do if your Plan is Being Retired
Dermot Goode of www.healthinsuranceireland.ie is warning consumers to be very careful when focusing on the average figures quoted by insurers following a spate of health insurance price hikes.
“In many cases, the actual impact on your plan could be multiples of this average figure, e.g.
- Laya have just announced an average increase of 4.7% from 1st April
- However, many of their schemes will increase by double this figure
- Plans such as Simply Connect Plus and Inspire Plus will increase by nearly 10%
It’s not just Laya who are doing this. Irish Life Health (ILH) announced a 5% increase from 1st January but plans such as 4D Health 2 and 4D Health 4 increased by c.11%.”
Mr. Goode is also warning consumers to consider the cumulative impact of multiple price hikes over the past year, e.g.
- ILH have announced a 5.9% average from April but they also had increases in January and in October last year.
- VHI and Laya have just announced increases, but their rates also increased in October last year, so their customers also have more than one increase coming their way.
“At best, many members will do well to escape with a cumulative impact of 7% - 10%. Some could be hit by increases of up to 15% and for those on the older schemes, some of these are being hit by cumulative increases of 25% or more.”
“In addition to rate hikes, some plans are being impacted by benefit reductions. For example, Laya have announced that their orthopaedic shortfall which is 20% on many plans will now double from April to 40%. For a typical hip or knee replacement, we estimate this will increase the shortfall from €3,000 to €6,000. This will impact over 30 schemes, including many popular plans such as Inspire, Inspire Plus and Prosper Care. Unfortunately, the popular Prosper Advanced scheme from Laya, which currently fully covers these procedures, will now have a 40% shortfall. For these members who need this benefit, they will have no option at next renewal to shop around for replacement cover”.
Mr. Goode advised,
“All consumers must always look at the small print on their renewal documentation to understand if any of their benefits are changing. The days of assuming that because you pay a higher renewal premium means you retain the same cover are now gone. It also means that auto-renewing on the same plan without engaging with your insurer to check for benefit changes could leave you paying more in premiums for less cover if you’re not careful.
If you’re insured through a company-paid group scheme, you may be able to avoid these shortfalls or co-payments. In some cases, insurers will waive the normal upgrade rule, which allows members to upgrade to a higher plan at the point of need for full cover”.
“In a welcome move, Laya are retiring 16 of their older plans which no longer represent good value for money. This will affect some of the ‘Advantage’, ‘Flex’ and ‘Precision’ schemes. Our advice to these customers is not to accept the first plan offered to them. Take this opportunity to reassess your needs in terms of your ideal cover and budget. You may find that you can get the cover you need at a lower cost, and if this means switching insurer, you’ll get full credit for the time spent on your previous plan. If in doubt, seek expert advice from an independent fee-based advisor and let them do the work for you!”
Dermot Goode is the leading health insurance expert in Ireland and the founder of www.healthinsuranceireland.ie . All information provided is for guidance purposes only and is subject to change. All consumers should get expert advice to ensure that any plan selected matches their exact cover requirements. For full information on plan details, please refer to the plan schedule of benefits or contact your insurer.
