Consumer Corner: Tips on how to save on your health insurance in 2024

There has been a number of private health insurance price hikes over the last year - health insurance has become an area where inflation has proved to be particularly sticky.

Pic: iStock

Private health insurance is a bit like your bank account. People know that there are other options available to them, but in general many are slow to change providers. 

Even if you do not want to change providers, there are ways you can save money when renewing.

Dermot Goode of insurance firm Lockton points out that ongoing medical treatment can be costly and health insurance provides financial protection by covering the costs associated with medical treatments, doctor visits, and hospital stays. 

Due to the system of community rating in Ireland, health insurance is available to all consumers irrespective of their age, gender, or medical history.

The main reason people opt for holding private medical cover in Ireland is to be able to access the network of private hospitals countrywide rather than relying on the public health system which can be subject to long wait times depending on the treatment required.

Since May 1, 2015, a 2% age loading has been imposed on people aged 35 or older when taking out health insurance for the first time. An additional increase of 2% is added for each subsequent year.

Health insurance should not be confused with serious illness insurance which is a type of insurance policy that pays out a lump sum payment if the policyholder is diagnosed with a specific serious illness or medical condition listed in the policy.

Goode says that serious illness insurance is often sold as an extra benefit on a term life insurance, whole-of-life insurance, or mortgage protection policy, but it can also be sold as an insurance policy on its own.

There has been a number of private health insurance price hikes over the last year and Mr Goode says that health insurance has become an area where inflation has proved to be particularly sticky.

However, with more than 500,000 people in Ireland planning to renew their health insurance in January and February, it is important that consumers are aware of the savings that can be made when it comes to negotiating a new policy.

The first tip — which rings true for many other policies — is to shop around.

“Our advice to every single policyholder, and particularly older health insurance members, is to shop around at each renewal to avoid the impact of increases,” says Mr Goode.

He says that if you’re on the same plan for three years or more 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.

The second tip is to consider switching to a “corporate” plan as you could be missing out on enhanced benefits as well as savings.

“Dated plans are generally not good value. There are some plans still on the market that we have not recommended to anyone in over 10 years.

“Too many health insurance members are still on dated consumer plans which are worst affected by any increase given their high cost,” says Mr Goode.

He says that corporate plans, however, tend to continuously offer the best overall value in terms of cost and benefits, so consumers should be considering these in future for their needs. It is certainly worth asking about corporate plans when you are renewing.

Mark Whelan of Bonkers.ie says that corporate health insurance plans are some of the most competitive and attractive options on the Irish market.

The next tip is not to allow fear of change or inertia hold you back.

Savings of between €500 and €1,000 can be made per adult on your annual bill and this could cover your car and home insurance for another year.

According to Whelan, contracts are only a year long, meaning there’s nothing to stop you switching every year if you want to.

“What’s more, some private health insurance providers now allow members to change their policy mid-contract.

“It’s useful to think about your health insurance the way you do your car insurance, shop around every year for the best deal out there.”

The next tip is to consider splitting your cover if you are taking out health insurance for your family.

“Often it doesn’t make sense to have everyone on the policy on the same level of cover.

“Everyone has different requirements and you should select a plan for each person reflecting their needs only.

“You can have everyone on the one policy but all on different levels of cover,” says Goode.

Whelan also says that people should be aware that the public health system too is not completely free of charge.

“Many people resist taking out private health insurance because they think that care provided through the public system is free.

“Well, it’s not. The public system only provides a price cap, not an exemption. All Irish citizens who don’t have a medical card or private cover must pay €80 for a night in a public hospital, up to a maximum of 10 nights in any given year.

“So, if you have to spend 10 nights in hospital over a 12-month period, this will end up costing you €800 in the public system. Not a small sum.”