Laya Healthcare to hike prices by average of 6.5% from October — its second this year

Laya Healthcare said the proposed changes will be communicated directly to its customers ahead of their renewal dates. Picture: Larry Cummins

Laya Healthcare has announced a 6.5% average price hike in health insurance from October 1 — its second price increase this year for its 700,000 members.

The company said the latest hike was required to address “a sustained acceleration in demand for healthcare services and rising costs” despite a 7% price hike in April, and two increases last year — in October and April.

Benefit changes will be introduced to hospital excess and shortfalls across a range of plans, and a ‘per visit’ excess will be introduced on the QuickCare benefit that gives fast access to treatment for minor injuries and illnesses in its network of approved centres.

The company said the proposed changes will be communicated directly to its customers ahead of their renewal dates.

Laya’s managing director, Dónal Clancy, said the cost of healthcare is rising across the world and is being compounded by a significant increase in demand for healthcare among an ageing population.

“While advances in modern healthcare, including new technologies and high-cost drugs are delivering better outcomes for our members, they are significantly driving costs up, particularly in private and hi-tech hospitals," he said.

“A pricing and product review is needed in order for us to meet the current and future needs of our members.” 

He said in the first half of this year, the company has seen an 11% increase in private hospital claim costs when compared to last year, driven in particular by an increase in cardiology and cancer claims — both areas have seen a 29% increase in claim cost increases this year compared to last year — and high-cost drugs increased by 35% alone in the first half of this year.

“We continue to prudently manage claims, including extensive claim cost management to ensure that our members are getting the most appropriate care in the most appropriate setting for their needs, and at a price that’s sustainable and help keeps health cover affordable for our members," he said.

The Health Insurance Authority (HIA) said it received notice on Friday of Laya’s proposed price hikes and it encouraged consumers to shop around.

“While we are aware that these price increases may have an impact on some consumers, the health insurance market in Ireland is an open market, and insurance providers can make price changes as they see fit,” it said.

“There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims.

“The total level of claims paid by insurers in 2023 rose by 15% on the previous year, and there was a slight increase in claims for private hospitals.”