Laya Healthcare customers face second price hike in six months

Premiums could rise by about €32 from June as the health insurer raises prices by an average of 2.3%

Earlier this year, customers in the Irish insurance market faced a 2.9% price increase.

The second-largest provider of health insurance in Ireland is to raise its premiums for the second time in just six months.

Laya Healthcare customers can expect to pay an average of €32 more for their insurance from June as the health insurer increases its price by an average of 2.3%. Earlier this year, customers faced a 2.9% price increase.

Laya, which has around 600,000 members, said it had seen the volume and cost of claims rising in recent months, with medical prices rising far faster than general inflation.

Cost of premiums rising

Health insurance expert Dermot Goode of TotalHealthCover said the 2.3% increase will add an extra €32 to the cost of health insurance for a family of two adults and two children on an entry-level plan.

Some plans will increase by double this, he warned, and consumers should be aware that their policy could be increasing “by a much higher percentage.” 

For example, the Inspire scheme is increasing by €134 or 5% for the same family, while Simply Connect Plus is increasing by €152 or 4% for a family, he said. 

Dermot Goode said increases could force many consumers to downgrade their cover or possibly even  cancel their health insurance. 

“As is typical with health insurance, once one insurer moves on rates, all follow suit,” he said, citing Laya’s move in January which was followed by similar moves from VHI in April, Irish Life Health from May and now Laya again from June.

Those on the older plans costing €1,800 plus per adult really need to review their cover as they will be hardest hit by these percentage increases and are more likely to see increases exceeding the average figure.

“These repeated increases could force many consumers to simply downgrade their cover or possibly cancel.” 

“However, given that the public health system is under huge pressure, we advise consumers to consider all lower-cost options first before they cancel.”