Check fine print on free child health insurance, watchdog urges

Households considering free health cover for children and teenagers have been urged to check out the fine print.

Health insurers are offering the cover in an attempt to stem the tide of cash-strapped customers fleeing the private system. The offers were launched by VHI, Quinn Healthcare and Aviva Health Insurance in a bid to address the recession-linked private insurance cancellations crisis, which is predicted to see up to 100,000 leave this year.

Under the plans, revealed by independent market analyst Dermot Goode of www.healthinsurancesavings.ie, families will be able to save up to €500 per year depending on the coverage being sought, but he urges people to examine the plans carefully. As part of the new offers, VHI — which despite being Ireland’s largest health insurance firm is in financial trouble — will agree to cover children under the age of 18 for free on its One Plus plan.

The deal, which is available until March 16, would save a family of two adults and two children €437 over the course of a year. A similar deal is also available under the Parents and Kids plan, saving €460.

However, as VHI is the only one of the three health insurers which refuse to allow people to change their plans before the end of their cover, the firm’s deals are only available to new customers and those renewing their policies.

Quinn Healthcare has also announced free child and student plans, which can be availed of between Feb 18 and March 19, saving a family of two adults and two children €460 under its Essential Select plan. In addition, Aviva Health Insurance launched a near-identical plan yesterday until March 16, which will potentially save a family of two adults and two children €416 under its Family Value package.

Mr Goode described the move as an attempt “to halt some of the 6,000 people a month from giving up their health insurance”.

He added that “the industry is in serious difficulty and the providers know they need to act before it gets out of control”.

The three insurers’ deals come at a time when their customer levels are plummeting as a result of recent massive price hikes.

Figures revealed in an extensive survey by the Irish Examiner earlier this month show that even before VHI’s latest price hike of 6%-12.5% due to begin on March 1, the firm raised prices by 23% in Jan 2009, 8% in Feb 2010, 15%-45% in Feb 2011 and 2% in November. Under these price increases, its Plan B Options/Health Plus Extra rate has surged by 65% in a year.

Quinn Healthcare customers are also feeling the heat, with the two separate hikes of 7%-25% and 6% last month, following previous rises of 19% in Jan 2010, 13% in Jan 2011 and 8% in April 2011.

Aviva customers have witnessed rises of 14% in October 2009, 5% in May 2010 and 14% in March, 2011.

Health Minister James Reilly promised to discuss the situation at the Health Insurance Forum.

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