Over 65s pay 43% more for health insurance, watchdog finds 

The report also found that while some 2.48m people in Ireland have private health insurance, 47% of the population, the growth in people taking up policies has slowed, with an increase of only 1.6% since 2022. File picture

Over 65s are paying 43% more for private health insurance than they were a year ago, pushing their average premium to over €2,100, a new report has found.

Other adults have seen price hikes of up to 17% for their health insurance, with the average increases pushing the annual average premium close to €1,600.

Irish Life Health recorded the highest price increase range, between 0.8% to 17.1%, with an average increase of almost 11%, Laya Healthcare had a price hike ranging up to 7.5%, with an average increase of 5%, while Vhi Healthcare hiked some prices by up to 13.7%, with an average increase of 4.7%.

The revelation from the private health insurance industry’s watchdog prompted fresh calls last night for consumers to shop around for a better deal.

The Health Insurance Authority’s (HIA) 2023 Market Report published yesterday shows that the average cost of health insurance increased by 10% since 2022 to €1,594.

The report also shows that people over the age of 65 are paying 43% more on average for health insurance.

Orthopaedic or joint replacement cover is one of the main reasons this age group is paying more, with two thirds of over 65s on high orthopaedic cover compared with only 27% of under 65s.

Just under three quarters of those under 65 are on restricted orthopaedic cover.

The report also found that while some 2.48m people in Ireland have private health insurance, 47% of the population, the growth in people taking up policies has slowed, with an increase of only 1.6% since 2022.

The HIA, the independent statutory body that regulates the private health insurance market, said price increases throughout 2023 by all three health insurers, as well as the cost-of-living crisis have combined to make insurance policies less affordable.

Daragh Cassidy of price comparison website Bonkers.ie said the fact that over 65s pay 43% more for health insurance is “pretty eye opening”.

Although some of this can be explained by the extra level of cover that people in this age bracket choose, it also shows that older policyholders aren’t shopping around and looking for the best deals.

“People are understandably reluctant to change provider as they’re afraid they might lose cover. However if you switch insurer you won’t have to serve any waiting periods again — as long as you switch within 13 weeks. This is not known by many people and is often a reason why people are afraid to switch. If you switch insurers while you are serving a new customer waiting period, the amount of time served with your first insurer will be taken into account with your new one.

“Regardless of your current health or claims history, any new insurer must take you on — by law they cannot restrict you from cover or charge you extra. This is how the Irish system works.

“In short, everything you’re accustomed to with your current provider will be available with a new provider.” He also said the expansion of free healthcare in Ireland in recent years might explain the slowdown in numbers seeking health insurance.

“More free GP care, relaxed thresholds for a medical card, and the removal of the €80 a day public in-patent charge means some may be more prepared to take a bet on the public health system,” he said.

Vhi continues to have the largest market share, accounting for 48.9% in 2023 followed by Laya Healthcare at 28% and Irish Life Health at 20.5%.

The report also found there are 350 plans and three insurers in the health insurance market, yet half of all those with insurance are on one of just 30 plans.

There has been a 15% increase in claims to €2.85bn compared to 2022. Hospital day admissions continue to increase at a faster rate than overnight stays.

Total premium income for the three health insurers is €3.2bn — an increase from €2.9bn in 2022.

The HIA’s chief executive officer, Ray Dolan, said its annual market report informs the HIA as to the state of play in the market.

“It is very useful to see the landscape of the sector and means we are able to assess and monitor trends in the industry and inform policy on that basis,” he said.