Cost to cover health insurance claims up over 16%

According to the Health Insurance Authority (HIA) annual report for 2022, the average premium paid by adult members dropped 1.2% on the previous year

According to the HIA, demand for health services in 2022 continued to rebound from the pandemic with out-patient hospital attendances outstripping in-house hospital stays. File picture

Health insurance companies paid out nearly €2.5bn in 2022, an increase of over 16%, to cover the cost of claims while the price of average premiums dropped, a new report has found.

According to the Health Insurance Authority (HIA) annual report for 2022, the average premium paid by adult members was €1,448 on January 1 this year, which is a 1.2% decrease on the previous year. The HIA said the reason for the drop was due to price reductions by two insurers and refunds to customers.

The total value of premiums paid to insurers in 2022 came to €2.93bn. The total cost of claims paid in 2022 increased by 16.5%, compared to the previous year, to €2.47bn, exceeding the 2019 pre-pandemic total of €2.25bn.

In 2022, 46% of claims were for treatment in private hospitals while public hospitals accounted for 17%. Paying consultant claims accounted for 19% of total claims paid, with claims for out-patient/GP/other treatments accounting for 17%.

The HIA said that throughout 2022, the number of people with health insurance in Ireland rose to 2.44 million people — up nearly 80,000 from the previous year — representing 47.6% of the overall population.

As of the end of 2022, there were 327 different health insurance plans on the market, of which 12 were introduced last year, with five retired. However, half of all people with insurance have one of 27 plans with the choice between plans very concentrated.

The HIA is responsible for inspecting and auditing health insurance companies for compliance with their obligations.

As of the end of 2022, Vhi Healthcare’s market share was 48.4% while Laya Healthcare had a 27.6% market share and Irish Life Health had 20.5%. Restricted membership undertakings (RMUs) have a combined 3.5% market share.

The HIA said it was contacted by 3,131 people in 2022 requesting assistance. The main areas included plan comparisons, insurer contact details and information in relation to Lifetime Community Rating.

​​In addition, almost 200,000 consumers used the HIA’s plan comparison tool.

According to the HIA, demand for health services in 2022 continued to rebound from the pandemic with out-patient hospital attendances outstripping in-house hospital stays. It said that this trend is reversing now as we move through 2023, where demand and supply constraints in the private hospital sector are evident.