Laya Healthcare's hike in premiums to cost customers extra €42 a year

Laya managing director Donal Clancy: 'We have tried to minimise the impact on customers.'

Laya Healthcare has announced an average price increase of 3% across its health insurance schemes, likely to mean an extra €42 annually for customers from October.

This follows an increase of 4.4% which took effect in April and was estimated to add an extra €55 to policy costs.

This means customers are facing a significant increase over the year and follows price increases announced by other insurance firms this year.

Laya Healthcare managing director Donal Clancy defended the latest price hike, saying they have tried to minimise the impact for their 690,000 customers.

“Claim costs are a significant factor of health insurance premiums — we are seeing a sustained increase in the cost and frequency of medical claims, notably in the private and high-tech hospitals,” he said.

“Year to date, we’ve seen a 24% increase in the volume of claims, while the overall cost of claims has increased by 18% — the highest rate of claims increases that we’ve seen in over a decade.

The cost of delivering healthcare is further compounded by increasing staffing and energy costs.” 

He pointed to existing benefits for customers, outside of the insurance payments, including a digital health hub that offers online appointments with GPs, physiotherapists, dieticians, or personalised fitness plans.

“Our members are often surprised by the wide range of healthcare supports outside of hospital accommodation and consultant visits that are covered as part of their scheme, giving access to everyday healthcare benefits at no additional cost to their cover,” he said.

Earlier this year, over one million Vhi customers also faced a price hike, with premiums increasing an average of 4.8% from March 1. This was estimated to add an extra €60 to €270 to payments for this year.

Irish Life Health also increased its health insurance premiums earlier this year, with a 5% jump in premiums taking effect from the start of July. That followed an increase of 4.5% in January.

At the time, Irish Life Health also said it was increasing prices because of a rise in the number of claims made.