Health insurance costs set to rise again as Irish Life warns of 5% increase

Health insurance customers will see an increase in their premiums if their renewal is due from January 1

Consumers have been warned of a “perfect storm” as Irish Life Health has announced another hike to its premiums, averaging 5% from the start of next year.

Health insurance customers will see an increase in their premiums if their renewal is due from January 1, 2026, while new customers will also face higher rates from the same date.

The latest announcement comes after the company already raised premiums in January, April and October and follows a string of price increases from competitors such as VHI and Laya.

Health insurance expert Dermot Goode said the impact will be significant, as nearly half the market — around 1.25 million health insurance customers — are due to renew their cover between December and February.

“This couldn’t come at a worse time,” he said. “This latest increase from ILH could cost a single adult anything from €65 - €125 for plans covering public and private hospitals.

“For a typical family, it could add anything from €160 to €255 to their total bill. For adults on higher-level plans or dated schemes, the increases could well exceed this.” 

In a statement, Irish Life Health blamed rising healthcare delivery costs.

Its managing director Ann Marie Nestor said: “People today benefit from more advanced and innovative treatment options, much of which is delivered in specialised settings.

“The essential improvements we are seeing in our healthcare settings mean that people are getting access to better and quicker treatment. This is very positive in terms of the standard of care our customers receive, but these improvements do, in turn, affect premium prices.

“I am acutely aware this comes at a difficult time for many households and it’s important to us that we offer a broad range of plans to meet different needs and budgets.” 

From January 1, 2026, undiscounted rates for the MyPlan 350 will cost €1,145.30 for an adult and €208 for a child. For a family with two adults and two children, the cost will be €2,706.60.

This 5% hike follows a 3% increase that took effect on October 1.

Mr Goode added that consumers should be wary of the average figures quoted by insurers, as the actual increase will depend on the plan they hold.

He said the cumulative impact of multiple rate hikes could mean consumers face an increase of 6–10% since their last renewal.

“The advice to all consumers now is to never just accept these increases, i.e. don't allow your cover to auto-renew,” he said. “At the very least, contact your existing health insurer and challenge them to find you a similar plan at a lower premium.”