Less than half of population pays for health insurance as average cost jumps 10.6%

Premiums rise but level of cover is reducing, says Health Insurance Authority 

HIA chiar Patricia Byron with HIA chief executive Brian Lee. Average health insurance premiums rose 10.6% despite the overall level of cover reducing across most plans, a new report shows.

Average health insurance premiums rose by almost 11% despite the overall level of cover reducing across most plans, according to a report by the Health Insurance Authority (HIA).

Less than half of the population pays for health insurance, the HIA Annual Market Report shows. It found 2.55m people in Ireland - around 46% of the population - held private health insurance at the end of 2025, an increase of 1.2% on the previous year. Average premiums increased 10.6% over the year.

VHI is the most popular health insurer, with 48.3% of the market, followed by Laya (27.9%), Irish Life Health (20.2%), and Level Health, which entered the market in November 2024, at 1%. The other 2.6% are covered by restricted memberships, which are for specific trades or organisations and are not open to the public.

Laya's average change in premium price was highest over the year, at 15.9%.

Total premium income in the market reached €3.8bn, with half of all consumers concentrated on just 34 plans, with 328 inpatient plans available on the open market at the end of 2025.

Rising premiums, reduced cover

The rising premiums are causing consumers to opt for cheaper policies with less comprehensive plans, reducing the overall level of cover across many health insurance plans. The report found more than 70% of people are on plans with restricted orthopaedic cover while many plans now have benefits limited or reduced, the most significant being major procedures such as joint replacement surgery.

The HIA is the independent State body that regulates the private health insurance in Ireland. “Our research clearly points to a shift in the type of cover people are opting for. While more people than ever have health insurance, many consumers are on plans that do not fully cover some of the most common and costly procedures," said HIA chief executive Brian Lee. "It is important that consumers understand the level of cover they have, and whether there are any shortfalls that could arise from their plan.”

Plans increasingly have restrictions, co-payments or partial cover for certain treatments, meaning common procedures such as hip and knee replacements may not be fully covered, and consumers may face substantial out-of-pocket costs should they require the treatments.  “Choosing a health insurance plan is not simply just about the price; it is about understanding what level of cover is involved, what you need most, and what is not covered as part of your plan. We urge people to consider their health needs when selecting a plan and balance this with cost," said Mr Lee.

At the end of 2025, 2.55m held private health insurance, which was an increase of 1.2% on the previous year. 

Most popular plans

The five most purchased plans in the age 26-64 age group were the VHI Company Plan Plus Level 1.3, Laya Inspire, Laya Inspire Plus, VHI PMI 35 13, and VHI Public Plus Care Day-to-Day. 

In the age 64-plus age group, the five most popular were all from VHI: AdvancedCare Day to Day, AdvancedCare Extra Day to Day, AdvancedCare 50 Day-to-Day, and AdvancedCare 100, and Premium Care. 

In the 18-25 age range, the most popular plans were VHI One Plan Family, VHI One Plus Plan, Laya Prosper, VHI PublicPlus Care Day-to-Day, and Laya's Signify Plus. 

In 2025, the number of children in Ireland who are insured fell to 21%.

At the end of 2025, there were 328 inpatient plans on the open market: 306 advanced - which provide cover in public and private hospitals - and 22 non-advanced plans, which provide cover mainly in public hospitals. In 2025, 33 inpatient plans were retired, and 23 new inpatient plans were introduced.

Lifetime Community Rating

The report also highlights that while more people are taking out health insurance, the number of consumers paying a Lifetime Community Rating (LCR) loading has also increased, rising to 5.7% in 2025, up from 4.9% in 2024. Under the LCR system, individuals who take out private health insurance for the first time after age 34, or who have had a break in cover, may incur a loading on their premiums. LCR is designed to encourage people to take out health insurance at a younger age.

“Lifetime Community Rating is a fundamental part of how the Irish health insurance system works. It supports fairness across generations by encouraging people to take out cover earlier and keep it in place over time, and our report shows a gradual increase in the number of people affected by LCR."