As consumers face spiralling health insurance costs, what are their options?

Don’t let your cover auto-renew — at the very least ring your provider and challenge them to check all their plans for you, writes health insurance expert Dermot Goode

Tue, 21 Oct, 2025 - 01:00

Dermot Goode

As we approach the busy period for private health insurance renewals, consumers need to brace themselves for significant rate hikes across the market. In addition to increases announced earlier in the year, VHI, Irish Life Health, and Laya have announced further increases from October 1.

The average increase is between 3%-4.5%, but the real impact could be multiples of this depending on the plan held. When you consider the cumulative impact of these increases over the last 12 months, some plans could increase by as much as 25%.

For those insured on these schemes, they may have to pay an additional €500-€900 per adult, while families could face increases of up to €400 on some of the mid-level schemes. While the new entrant, Level Health, increased its rates in April, it is the only health insurer not to increase its rates again in October.

There are numerous cost drivers impacting health insurance premiums, but all insurers are pointing to the rising volume and cost of claims from the private hospital sector in particular. This is not surprising as there has been a definite shift away from the public health system for those holding private medical cover.

This is especially the case for those who want to select their preferred consultant, hospital, accommodation and even time of admission. Unfortunately, medical inflation continues to rise globally, and we can expect further increases to come early in the new year.

Dermot Goode: All consumers should at least make one phone call to their existing health insurer. Challenge them to check all their plans to find something similar to the existing cover, and don’t be afraid to disclose your budget to them.

For those consumers still insured on dated plans, they will be hardest hit by the latest round of rate hikes. Unfortunately, this includes mainly older members who don’t want any excesses on their policy and who need full cover for major orthopedic and ophthalmic procedures. For many, the cost will now be unaffordable, and they will have no option but to shop around for better deals.

Also, the insurers are retiring some of their dated schemes, which means these members will also have to source alternative cover as their existing plan may no longer be available.

Many consumers are also unsure whether they’re overpaying for their cover. For those who meet the following criteria, a full cover review is probably long overdue:

If you’re on the same plan for five years or more, or are paying more than €2,500 per adult;
If you don’t have a small excess on the policy, or if the whole family are on the same plan;
If you haven’t considered an up-to-date corporate scheme (available to all consumers).

For those who meet any of the above criteria, a full review of the health insurance cover is essential and could save them hundreds or even thousands of euro. In many cases, they may be able to source better value cover from the same health insurer.

For those who are nervous about making any changes to their cover, they should seek independent expert advice or, at the very least, have a trusted friend or family member with them when they engage with their health insurer.

While many criticise the number of plans on the market, the upside of this is that there are plans available to suit all requirements and budgets. However, if you don’t engage with the health insurers by phone, you may miss these deals and continue to over-pay unnecessarily for your cover.

There are numerous cost reduction tactics available to consumers such as: opting for a competitive corporate plan; taking on a small excess per private hospital claim; reducing the accommodation cover; splitting the cover as not every family member will need the same benefits; taking on limited co-payments in return for significant savings; or even opting for a network plan which covers specific hospitals only.

At the very least, all consumers should at least make one phone call to their existing health insurer. Challenge them to check all their plans to find something similar to the existing cover, and don’t be afraid to disclose your budget to them.

You should also outline your exact requirements in terms of preferred hospitals, consultants, and even pending treatments, as they must ensure any recommendation addresses all of these concerns. Too often, consumers are shocked to find there is a lower cost option available they weren’t aware of, simply because they never engaged properly.

For those with no health insurance, there are other types of health cover they can consider. For example, HSF Health Plan has a range of medical cash plans which cover everyday out-patient expenses and these plans are extremely well priced.

There are also dental plans available from the likes of VHI and DeCare Dental for those worried about the rising cost of dental treatments, for instance, DeCare has a range of ‘Healthy Smiles’ plans to suit all budgets. These dental plans are very competitively priced and have minimum waiting periods to serve.

The most important advice for all health insurance consumers is to never let your cover auto-renew. This is where your cover rolls over, which means you could end up paying significantly more for potentially less cover, as lots of benefits are changing.