21,000 drop health insurance in first 3 months of year

More than 1,600 people are giving up private health insurance cover every week, new figures show.

Figures just published by the Health Insurance Authority show that 21,000 people dropped their private health insurance during the first three months of this year.

Year-on-year, 47,000 gave up health insurance.

According to the HIA’s market figures, just over 44% of the population currently have private health insurance plans. At the end of March, there were just over 2m people with private cover, compared to 2.3m at the end of 2008 when the market peaked.

Total claims paid last year by the four main insurers fell by 4% to €1,783m. The average claim payment was €1,017 — a 2% decrease on the previous year.

Dermot Goode of HealthInsuranceSavings.ie said he was not surprised at the number of people who had dropped their health insurance cover.

He believes that the number of people giving up private health insurance over the same period next year will be even worse.

“People avoided the huge price hikes earlier this year by changing their renewal dates but they are going to get caught next year,” he said.

Mr Goode also estimated that the number of people who have private health insurance would dip below 2m by the end of the year, if not sooner.

“By the end of next September there is real risk that we will see the total number will fall between 2m,” he warned.

The market has been responding by offering cheaper cover but that also meant that people availing of the new plans were taking on a higher level of risk.

“The quality of cover on the market has deteriorated considerably compared to five years ago,” said Mr Goode.

Fianna Fáil’s health spokesman, Billy Kelleher, pointed out that, since James Reilly was appointed minister for health in March 2011, some 184,000 people have given up their private health insurance.

“The minister who wants to make health insurance compulsory is twiddling his thumbs while the existing market declines rapidly,” said Mr Kelleher.

He said that the market had also become unbalanced due to the haemorrhage of younger, healthier policy holders, a situation that was threatening the sustainability of private insurance by causing further upward pressure on insurance premiums.

“Between the tax changes announced in the last budget and the subsequent increase in the levy brought in by Minister Reilly, all the Government has done is exacerbate the problem,” said Mr Kelleher.