Shopping around urged for health insurance

Private health insurance might be good for your well-being but could be harming your pocket, according to the Health Insurance Authority whose research shows that less than a quarter of policy holders have swtiched plans.

As policy renewal notifications start to fall through letterboxes this November, the HIA is advising policy holders to check their current plan to ensure they are getting value for money from their health insurance cover.

The authority kicks off a print, radio, TV, and digital advertising campaign to encourage policy holders to actively review their current health insurance cover and get information on plans and prices before they renew policies for 2017.

Launching its campaign, the authority’s CEO, Don Gallagher, said: “With average premiums in 2016 at €1,174 per person, health insurance is a significant annual cost for many families. However, the health insurance market is competitive. One of the ways in which health insurers compete is by targeting different demographic groups of consumers with insurance plans at different levels of cover. In our community-rated health insurance market any customer, irrespective of age or health status, is entitled to avail of any plan offered by any insurance provider.”

Mr Gallagher added: “The range of insurance plans on offer is changing all the time. Personal and family circumstances also change and this can change the level or type of health insurance needed. Someone who hasn’t reviewed their level of cover, and the price they are paying, in the last three years is unlikely to be getting the best value they can for the cover they need.”

Research conducted on behalf of the authority in 2015 indicated that there is a fairly low level of switching in the health insurance market. Just 24% of policy holders have switched provider at any time since taking out private health insurance. For those that have switched, the main reasons given were cost savings (65%) and the level of cover available (23%).

The study also revealed that 70% have made no change in the level of cover they have in the previous two years, and 80% had no plans to change their cover in the next 12 months.