'Too expensive': Lapsed health insurance at highest rate for a decade

Patricia Byron, chairperson of the Health Insurance Authority (HIA), with chief executive Brian Lee, officially launched the new HIA Comparison Tool. HIA research shows 82% of consumers don’t shop around for their health insurance despite rising prices. Picture: Maxwells

One in five people in Ireland without health insurance used to have it but cancelled, with cost cited as the main reason for giving up the cover.

Lapsed cover is at the highest rate in over a decade, a new survey also found.

The Health Insurance Authority (HIA) said those with health insurance are often unwilling to shop around despite all the main companies raising their prices on multiple occasions in the last year.

While over eight in 10 (82%) say they haven’t shopped around at all in the last 12 months, more than 70% have never switched either their provider or plan at all.

“Even small adjustments can make a meaningful difference to cost while still ensuring you have the cover that suits you,” HIA chief executive Brian Lee said.

Earlier this month, the regulator said the average health insurance premium in Ireland has reached €1,902, following an average increase of 9% in the last year. 

Furthermore, the average household cost for insurance is now over €2,500, up significantly from €2,185 in 2023, according to the new survey.

Insurers have pinned the blame on the increased cost of delivering healthcare and, against the backdrop of people unwilling to switch, the HIA has launched its own comparison tool to help consumers shop around and compare different plans.

Its survey, conducted by Ipsos B&A every two years, found that 46% of adults in Ireland have private health insurance.

Of the three in 10 who have switched, only 4% have switched provider in the last year, while just 15% switched plans with the same provider despite significant premium increases and ongoing cost-of-living pressures.

Asked about recent increases, 46% said the premium hikes were not justified, which the regulator said marked the highest level of dissatisfaction in a decade.

Of those who have health insurance, three in five (61%) view it as a necessity rather than a luxury. Those with health insurance are more likely to be “white collar workers” or living in Dublin. One in five of all policy holders are over 65.

The regulator said it strongly encourages every consumer to take time to review their plan and make sure to shop around to meet their own needs and within their budget.

Its new comparison tool can match plans to a person’s health needs and budget, and it added that because it is run by the regulator, households can rely on it to be impartial and up to date.

HIA chair Patricia Byron said: “In a market characterised by low levels of mobility and limited consumer engagement, improving transparency and access to clear, independent information is essential.

“We would strongly encourage consumers to shop around each year when their plan comes up for renewal."