Making Cents: It's time to get your health insurance in good working order

Now is a good time to start considering options

January is the busiest renewal period in the health insurance market.

With Christmas on the horizon it can be tempting to put unappealing tasks on the back burner and one job most consumers are never in a hurry to do is shop around for financial products.

But with a large chunk of private health insurance policies due for renewal in the new year, an expert is advising that now is a very good time to start considering options.

“January is the busiest renewal period in the health insurance market,” Dermot Goode, of Totalhealthcover.ie said. 

“Almost half the population have private health insurance, with approximately 40% of all members renewing between Dec – Feb and 22%. The largest portion, or 500,000 members, are due to renew in January.

“While we haven’t seen any one large premium increase, we have seen lots of small incremental price changes and that all those renewing over the next three months will see their premium increase on the back of these rate hikes.

“Those on the most dated plans who have never reviewed their cover will be hardest hit.” 

The VHI is withdrawing 25 older plans and Mr Goode is advising affected consumers, who are generally older, not to simply accept the first alternative plan offered.

“Those whose plans have been withdrawn need to shop around for better value as premiums continue their upward trajectory,” he said. 

“VHI customers who must select a new plan should seek independent advice and reassess their needs rather than simply try to replicate the benefits of the old plan.” 

Mr. Goode also confirmed that many of the poorest value plans on the market haven’t been retired and could be costing households hundreds, if not thousands, in missed savings by not shopping around.

“Dated plans are generally not good value so policyholders should reassess their needs and cover,” he said. “Older members aged 60 plus are typically paying 40% - 50% over and above what they need to for their cover, as they tend to be insured on the most dated schemes and are reluctant to switch.” So what should you look out for when renewing?

“If you’re on the same plan for 3 years or more, or paying more than €1,800 per adult, or if you don’t have a small excess on your policy, then you’re at risk of over-paying and a review of your cover is definitely recommended,” Mr Goode said. 

“Also, if you’re not on an up-to-date corporate plan, you could also be paying too much for your cover.” 

Mr Goode has long advised that corporate plans tend to continuously offer the best overall value in terms of cost and benefits. 

“Most people are still unaware that they are eligible for corporate plans,” he said. “We advise all consumers to either get good advice or do your homework before engaging with the insurer, as once you request a specific plan by name, all insurers will then go through this with you in detail to assess its suitability to your needs.

“Don’t let fear of change or inertia hold you back. Saving €500 - €1,000 on your annual bill could cover your car and home insurance for another year so take steps now to avoid over-paying. Also, start the process early as it can be very difficult getting through to the insurers in the run up to Christmas simply because so many people renew at this time.” 

Finally, Mr. Goode is advising all those who currently can’t afford full medical insurance to consider dental or health cash plans instead such as those from DeCare Dental and HSF Health Plan. These plans are very keenly priced with no age loadings and their waiting periods tend to be much shorter than that of private health insurance plans.

Total Health Cover has seen a significant increase in the number of enquiries for this type of cover over the past 12 months.

Deal of the Week: 

While fears of the latest variant is seeing travel limited from certain areas, many Irish holidaymakers are hoping to resume foreign travel in the coming months. With that in mind, An Post Money is reminding consumers about the An Post Currency Card, which it describes at 'the perfect travel companion for a long haul trip'. 

The prepaid Mastercard allows travellers to purchase and top up 16 currencies on a single card with 0% commission for foreign currency transaction.

The An Post Currency Card has the added benefit of 24/7 global assistance and the ability to top up online or in person at one of over 900 post offices nationwide. Customers can withdraw local currency worldwide at ATMs displaying the MasterCard acceptance mark, pay for goods and services at over 30 million shops, restaurants and outlets across the world and make contactless, online and over-the-phone payments.

People who are preparing to travel overseas can avail of the An Post Money Currency Card at their local post office.