Health insurance market set for shake-up

The health insurance market is set for a major shake-up as insurers provide lower-premium plans in selected hospitals.

It is expected other insurers will follow Aviva in providing reduced cost health insurance with the new policies.

The slimmed-down cover under these policies will include between 50% and 65% of hospitals nationally.

It means those taking out insurance will need to look carefully at the coverage available in their local hospitals.

Dermot Goode of healthinsurancesavings.ie said that such plans could be useful to some consumers.

"If somebody is seriously thinking of cancelling their cover or reducing their cover down or taking dependants off because they can't afford it... they are definitely plans worth considering," he said.

"They do provide good cover albeit in a reduced number of hospitals."