Insurance loophole could cut costs

FAMILIES facing spiralling health insurance costs could cut the price of the service significantly through a rarely mentioned loophole in the system, it has been claimed.

The Health Insurance Authority (HIA) has confirmed that under existing structures the majority of premiums offered to companies and their staff are provided at significantly lower rates than other alternatives.

However, according to the group, families or individuals are also entitled to request these same lower-priced insurance rates, resulting in a potential 10% reduction in costs.

“Private health insurers must allow all consumers access to any of their plans. What consumers don’t realise is that the health insurance provider must also offer these group plans to individuals if requested,” said HIA chief executive Liam Sloyan.

In addition to the group premium price reduction, the HIA has also stated that individuals with private health insurance can further cut their costs by up to 20% by transferring from their current policies to those tailored to meet their needs.

“We estimate that the average family could save up to €400 annually by picking the plan most suitable for their needs,” Mr Sloyan added.

The HIA has previously highlighted the right of every consumer to switch insurers or premium policies without penalty.

While more than two million people have private health insurance in Ireland, the industry has been under increasing pressure due to the economic downturn.

In August, VHI claimed up to 200,000 people may quit their private health insurance policies by the end of 2010 as a result of rising unemployment and high premium costs.

In the first six months of this year alone the company, which has a 66% stake in the Irish health insurance market, lost 70,000 customers.