Irish Life Health hikes cost of insurance by almost 5% in latest increase

Recent CSO figures show the price of health insurance has risen by more than 10% in the past 12 months 

"Increasing premiums is a very difficult decision and we remain focused on ensuring we minimise this as much as possible," said Irish Life Health managing director, Ger Davis. 

Health insurer Irish life has announced its third price hike in 12 months, with its latest increase of 4.8% set to take effect from January 2024.

Following increases which took effect in July and March this year, most plans have now risen by up 10-15% on last year, costing families anywhere from €150 to €600 extra for cover, warns health insurance broker, Dermot Goode.

"The impact of the three rises means we are seeing some of the highest premium rate increases in 10 years," warns Mr Goode of Lockton, parent company to Totalhealthcover.ie, with figures from the Central Statistics Office showing that health insurance inflation has risen by more than 10% in the last 12 months.

Up 4% alone in October, according to the CSO, Irish Life said its latest hike in health insurance premiums reflects "ongoing, increasing demand for healthcare services" including the "very significant and continued increase" in the volume and size of claims.

The total level of claims paid in 2022 rose by 16.5% from the previous 12 months to €2.93bn, according to the HIA, exceeding claims paid in 2019, pre-pandemic. The HIA has also reported a 54% increase recorded in outpatient, GP and other claims.

"Increasing premiums is a very difficult decision and we remain focused on ensuring we minimise this as much as possible," said Irish Life Health managing director, Ger Davis. 

"We are continuing to see significant increases in customers accessing care with a 25% increase since 2019 in the number of people receiving treatment in private hospitals. 

"While there is some continuing inflationary pressures (staff & utility costs) for hospitals and other care providers, this is thankfully at a lower level than we have previously seen”.

Irish Life is not the only insurance provider to increase health premiums. In August, Vhi announced its second price rise in the year, with typical plans for a family costing €400 more expensive when they renew, due to the two rises.

Average increases of 7% - a significant rise - were applied to Vhi plans from the start of October, with the insurer's managing director, Aaron Keogh saying the pandemic brought "significant impacts" on healthcare delivery in Ireland. 

Laya has also announced two premium rate rises, with the most recent kicking in just last month. Laya, which is the second largest health insurer in the State, released plans to increase the cost of its policies by an average of 3%, which was on top of a 4% rise in premium rates earlier this year.