- More than 4 in 10 (43%) of the over 45s are not confident they’ll be able to afford health insurance in 2-5 years time
- Women at great health insurance affordability risk
- 10 ways to keep health insurance costs under control
Three in four (76%) Irish adults not in receipt of employer-sponsored private health insurance either don’t think, or are unsure if, they’ll be able to afford private health cover over the next two to five years, in the wake of a spate of price hikes over the last few years.
This is according to a survey of 1,000 adults across the country by the insurance advisors, NFP Ireland. The survey, which was conducted against the backdrop of the successive private health insurance price hikes of recent months, examined how confident Irish people are in their ability to afford private health insurance in the next two to five years. More than four in ten (43%) of those aged over 45 – arguably the age cohort most likely to need medical care and to make a private health insurance claim – are not confident at all that they’ll be able to afford the cover over the next few years, according to the survey.
Looking specifically at those who don’t have employer-sponsored health insurance (see Table 1 in the Appendix), headline findings from the NFP health insurance survey reveal that:
- Only one in four (24%) are confident that they’ll be able to afford private health insurance in the next two to five years.
- One in three (34%) are not confident at all that they’ll be able to afford the premiums.
- Almost half (48%) of 45-54 year olds say they definitely won’t be able to afford the cover in the coming years.
- Women are far less confident than men that they’ll be able to afford private health insurance: four in ten (39%) women say they definitely will not be able to afford the cover, compared to three in ten (29%) men. Overall, eight in ten (80%) women either don’t think, or are not sure if, they’ll be able to afford the cover over the next few years, while seven in ten (72%) men say the same.
Commenting on the survey findings, Patrick Brennan, Head of Health & Wellbeing Strategy with NFP Ireland, said:
“Rising health insurance premiums are placing real pressure on families, particularly those with growing children and evolving medical needs. Rising claims costs, new medical technologies, increased activity in private hospitals, and the ageing population have all contributed to higher insurance costs and unfortunately, health insurance price pressures are unlikely to ease any time soon.
So, it’s not surprising that our survey found that three-quarters of Irish adults not in receipt of employer-subsidised health insurance are not hopeful they will be able to afford the cover in the coming years. This is hugely concerning as it means we could see many people dropping their private health insurance cover in the near future. Nearly half (46%) of Ireland’s population – or 2.5 million in total – hold private health insurance[1] and many of these will be hugely disappointed and worried if cover becomes so unaffordable that they may have to drop it.
It’s important however for people to know that there are options out there that can help them keep the cost of their cover under control – and hold onto their insurance. By taking the time to review their cover each year and to shop around, families should be able to secure more affordable health insurance without compromising on cover.”
Regional & socio-economic differences
The NFP research unveiled some interesting geographical and socio-economic differences when it comes to the ability to afford private health insurance.
- Those living in Dublin were the most likely to say they’d be able to afford private health insurance in the next two to five years: Three in ten (31%) Dublin residents are confident they can afford the cover but less than one in seven (14%) residents of Connacht/Ulster and less than one in four (24%) of Munster residents felt the same.
- Dubliners were also the least likely to say they definitely wouldn’t be able to afford the cover in the coming years: 30% of Dubliners indicated this to be the case, but 43% of those living in other Leinster counties are not confident they will be able to afford the cover.
- A higher proportion of the working class[2] than middle class[3] are likely to struggle to afford the cover. Eight in ten (82%) of those in traditional working class jobs either don’t think, or are unsure if, they’ll be able to afford the cover over the next two to five years. This compared to seven in ten (71%) of those in middle class jobs.
Ten Ways To Keep Health Insurance Costs Under Control
NFP has outlined ten ways that people can keep their health insurance costs under control, without compromising on cover.
- Review your recent healthcare usage. Look at family GP, consultant and other outpatient practitioner visits and ongoing prescriptions. Compare your usage with what your policy offers refunds for. This will help you gauge if you are being sufficiently refunded for those expenses, or if your usage isn’t enough to warrant paying for the cover.
- Challenge your insurer. If you are not using certain benefits, ask your provider for better value alternatives. If their options do not suit, check the other insurers. Switching is safe once there is no break in cover and the new plan offers comparable benefits, but be vigilant or get advice as there will always be differences.
- Consider splitting family cover. If you’re a family, check if you can save money by splitting your cover. The whole family does not have to be on the same plan and indeed, it doesn’t always make sense to have everyone on the same level of cover. Adults can often avail of plans that are more closely matched to their own needs. Mixing and matching plans within the family unit allows you to combine competitively priced adult cover with suitable child cover. Structured correctly, this can reduce overall cost while maintaining appropriate protection for each family member.
- Watch for promotions and discounts. Some insurers offer reduced child premiums, free cover for additional children or discounts on newer plans. These offers change regularly, so reviewing annually is essential.
- Choose the right excess. Choosing a higher excess for private hospital admissions can lower your premium without affecting everyday protection. Be mindful though that while increasing excess can reduce premiums, you must be financially prepared to meet those costs should a claim arise. However, better to have a bill for €500 than to have no health insurance and limit your access to care and see it delayed!
- Reconsider your accommodation preferences. If a private room in a private hospital is not essential to you, you could save money by reducing your cover to semi-private.
- Avoid outdated plans. A large number of households remain on old plans that have been replaced many times over. These plans tend to be more expensive and often include benefits that families do not use. Get a full breakdown of your current cover and compare it with up-to-date options.
- Explore corporate health insurance plans. Don’t overlook corporate plans as these offer particularly good value and are accessible to everyone.
- Never auto renew without reviewing. Take time to review your health insurance plan each year to ensure you are on the most competitively priced and suitable plan. Never auto-renew and if you are unsure, get professional advice.
Seek advice beyond comparison websites. Never change your cover or select a plan based purely on information provided by comparison websites. Always engage directly with the insurers or with qualified advisors who are authorised to give specific advice in this area.
