Health insurers to give customers premium rebate during Covid-19 crisis

Ireland’s three main health insurers are giving customers a premium rebate during the Covid-19 pandemic.

VHI is to refund an average of 50% of the premiums paid by customers over the three months that private hospitals are being taken over by the State.

Laya will redirect claim cost savings back to members in three equal instalments over the period - €195 for every adult and €60 for each child member.

Irish Life Healthcare will lower the premiums by between 36% and 60%, depending on the plan, for April, May and June.

The Health Insurance Authority welcomed the measures announced by the insurers that include a range of supports for their customers.

Health Minister Simon Harris welcomed confirmation by the health insurance companies to offer customers a rebate during the Covid-19 pandemic.

The Government recently announced a partnership agreement with private hospitals as part of the national effort to respond to the public health emergency.

Since the announcement, there have been meetings between the HIA, the Department of Health, health insurers, the HSE and the Central Bank to discuss the private hospital arrangements.

“The measures announced are being taken in recognition of the temporarily changed landscape in which health insurers currently operate,” said Mr Harris.

Health Minister Simon Harris

The agreement with private hospitals if for an initial three-month period as the State seeks to optimise the use of private and public facilities throughout the country in response to the emergency.

The Department of Health, together with the HIA will continue to monitor the situation and how it is affecting the health insurance sector.

Vhi, Ireland’s largest insurer, said that because of the changed situation, customers would see premium waived by an average of 50% over an initial three months – mid-May to mid-August.

As many dental practices remain closed for non-emergency business due to Covid-19, Vhi will also be waiving 30% of the premium for customers with Vhi dental insurance over the same three month period.

Laya is to redirect claim cost savings in the form of a benefit and they will amount to €510 for a family of two adults and two children.

The total will be split into three equal instalments and paid over three months – April to June, with the first instalment paid at the end of the month.

If a member’s employee pays for their health insurance, separate payments will be made to the employee and the employer.

Irish Life said their premium reduction would be applied retrospectively to premiums paid by customers for April, May and June and would be offset against premiums due in the following months.

Those on plans with largely public hospital cover would receive between 17% and 21% of their monthly premium back.

For the hospitals that are included in the agreement, insurers will cover the public hospital charge for in-patient services of €80 per day up to a maximum of ten days.

Insurers will continue to provide cover for services that fall outside the deal struck between private hospitals and the HSE.

This will include cover for private care in public hospitals. It also includes psychiatric care, maternity care and addiction treatment.