Health insurance costs drop during pandemic 

New figures published by the Health Insurance Authority show the average premium was €58 cheaper last year compared to the 2019 average of €1,200.

The average cost of health insurance dropped by almost 5% last year to €1,142 but the decrease was linked to exceptional refunds provided by insurers to compensate customers for some restrictions on access to treatment in private hospitals as a result of the Covid-19 pandemic.

New figures published by the Health Insurance Authority (HIA) show the average premium was €58 cheaper last year compared to the 2019 average of €1,200.

However, the HIA noted that older people pay more for their health insurance with the cost of premiums for those over 65 years on average 34% higher than for those under 65 years for a typical mid-level policy.

Total claims paid out by the three main insurers, VHI, Laya, and Irish Life Health, also decreased by 16% last year to €1.88bn, compared to €2.24bn in 2019.

Takeover of private hospitals

The HIA said the lower cost of cover and the reduction in claims costs were associated with the takeover by the State of private hospitals for three months last year as a measure to cater for patients with Covid-19.

The average claim for adults ranged from €222 for those aged 18-29 years to €3,429 for those aged over 80 years.

The number of people with private health insurance rose by 1.8% last year, despite lower demand for health services during the Covid-19 pandemic.

The HIA’s latest annual report shows 2.31m adults and children had private health insurance at the end of 2020, the highest level since 2008 when numbers peaked before the economic downtown.

The share of the population with health cover currently stands at 46.3% of the population, the highest proportion since 2011 but still some distance from the peak of 50.9% in 2008.

According to the HIA, people aged 45-80 years are most likely to have health insurance with the proportion of the population with cover varying significantly by age.

The figure is 36% among those aged 18-29 years, rising to a peak of 53% among the 75-79 years age cohort.

Increased demand

The HIA said the figures showed there will be an increased demand for healthcare as the average age of the population is increasing, with the percentage of the population in the older age groups steadily rising and at a faster pace than the overall average.

The over-60s now account for 22% of all insured individuals, a figure which has increased by 0.6% per annum since 2009.

The HIA estimated that average claims per person rose by 2.9% last year directly as a result of the gradual ageing of those with private health insurance as older people have more demand for health services.

The figures also show slightly more women than men have private health cover.

VHI Healthcare continues to be the market leader with 49% of all health insurance customers, although it once had a 95% share in the mid-1990s before the market was opened to competition.

Laya Healthcare had 28% of health insurance customers last year, while Irish Life Health had a 20% market share.