Health cover price war set to hot up

The health insurance price war is expected to hot up over the coming weeks as providers fight to win younger insurers before new penalties apply for taking out cover for the first time.

Laya Healthcare, Ireland’s second-largest health insurance provider, yesterday announced Ireland’s lowest cost health insurance plan in a bid to attract younger buyers. The plan, called Assure Vitality, costs €430 a year for a single adult. The cost of insuring a family of two adults and two children on the same scheme starts from €1,152.

From May 1, new penalties will apply to those over the age of 34 taking out insurance cover for the first time.

The introduction of lifetime community rating will result in an extra 2% loading on premiums for each year above the age of 34, up to a maximum of 70%.

Laya’s announcement comes in the wake of the launch of a €449 health plan by VHI Healthcare last weekend.

Health insurance expert Dermot Goode of www.totalhealthcover.ie said he expected the price war to hot up as other insurers introduced products to capture the younger market.

Laya healthcare managing director Dónal Clancy said the market urgently needed definitive measures to help stabilise it after record declines in recent years.

He described lifetime community rating as one of the most promising initiatives to be introduced in many years.

“While there are tentative signs that the market is recovering, with some modest growth in the past two quarters, it’s still way to early to say that it is stabilising,” he said.

Laya Healthcare also launched www.icr.ie — an information portal aimed at demystifying lifetime community rating.

“As Ireland’s second largest health insurance provider with almost half a million members, we are committed to the principle of lifetime community rating and making it a success. Increasing awareness and understanding around this complex legislation will be key to this,” said Mr Clancy.

Assure Vitality covers treatment in all public hospitals but there is no cover for private hospitals and clinics. However, under the plan, members can use the ‘CareOnCall’ service to get expert diagnostic and treatment advice from a registered GP, nurse or physiotherapist.

Last weekend, VHI offered two new hospital plans — Start Plan and Start Plan 250, with premiums from €449 per adult and €1,096 for a family of two adults and two children.

The cheapest plan — Start Plan, offers cover for a semi-private room in selected public hospitals.

Start Plan 250 costs €699 per adult and offers cover for a semi-private room in selected public and private hospitals, with an excess of €250 per private hospital claim.