Health insurance premiums rocket by over €140 despite claims 'slowing down' in 2024

Health insurance premiums rocket by over €140 despite claims 'slowing down' in 2024

The Health Insurance Authority said the growth in the number of people having health insurance is dropping and the regulator believes that cost is a key factor with price increases throughout 2024. File picture

Households were hit by a huge surge in the cost of health insurance as premiums jumped by almost €146 last year, despite the volume of claims showing “signs of slowing down”, the industry’s watchdog has said.

Furthermore, insurers netted an extra €400m from premiums in 2024 compared to 2023 as the average plan rose 12.2%. The annual market report from the Health Insurance Authority (HIA) said the cost of some plans had increased by as much as 25% last year as consumers face ever-growing costs for health insurance in Ireland.

It said that almost half the population (46%), or 2.52 million people, have health insurance and pay an average premium of €1,740. However, the growth in the number of people having health insurance is dropping and the regulator believes that cost is a key factor with price increases throughout 2024.

HIA chief executive Brian Lee said: 

Our research shows that affordability is the main reason consumers choose to cancel their health insurance plans as many consumers are under financial strain and can’t sustain the current rate of price increases alongside other increasing costs and inflation. 

While there was a 1.3% increase overall in the number of people insured last year compared to 2023, there has been a decrease in the number of children insured at 21.6% compared to 23% in 2019.

At the same time, the total income from health insurance premiums now stands at €3.6bn. This is a rise of €400m from the €3.2bn market in 2023. The HIA said this rise can be attributed to price increases on premiums and the “moderately increasing” numbers of people purchasing health insurance.

However, after a significant increase in claims in the years immediately following covid-19, the regulator said that the volume of health insurance claims now appears to be slowing down.

In 2024, claims increased 6% compared to 15% in 2023. While claims for treatment in a private hospital increased by 2% in 2024, claims for public hospital treatment decreased by 2% during this period.

The regulator said there were 338 active inpatient plans in Ireland, but half of people are on one of just 32 of these plans.

Furthermore, it said that over-65s are paying an average of 44% more for their health insurance compared to younger age groups. It said this cohort tend to be on plans with higher cover, particularly for orthopaedic procedures such as hip or knee replacement surgery.

The 18 to 39-year-old age group has the lowest level of insurance coverage with less than two in five (38.9%) covered. The HIA said that the figures show that health insurance is a “product that many people in Ireland value”.

“We know that there is still a low number of consumers switching providers and the HIA would always recommend shopping around, particularly as you move through different stages of life and your needs will change, and you could be paying for more than you need,” Mr Lee added.

“Consumers don’t necessarily have to change provider, as switching between plans with the same providers is also an option.”

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