Consumers Advised to Avoid 35 Health Insurance Plans Lacking Value

Consumers are being urged to reconsider their health insurance options due to an analysis revealing that 35 plans may not provide the best value. The study, conducted by health insurance expert Dermot Goode of Health Insurance Ireland, identifies plans that, while still offering adequate coverage, have become increasingly expensive following recent premium hikes by major providers including VHI Healthcare, Laya Healthcare, and Irish Life Health.

Many policyholders are facing significant price increases, with some premiums escalating by as much as €950 annually for adults. Mr. Goode’s analysis indicates that between 10% and 15% price hikes are expected across all plans, with certain dated offerings seeing increases as high as 25%. As approximately 500,000 policyholders are set to renew their coverage before January 2024, the timing of this warning is critical.

Details of the Analysis

Mr. Goode highlighted that many consumers are overpaying for plans that have not been updated in years. He stated, “A 10% increase on some of these plans could add €300 to the adult cost of their cover.” Some of the outdated plans are projected to rise by between €367 and €955 per adult. He emphasized the importance of reviewing coverage before the next renewal, suggesting that many individuals could find lower-cost alternatives from the same insurer.

Among the plans flagged by Mr. Goode are several from Laya Healthcare, including Company Care Gold, which costs €9,437 annually for an adult. Other Laya plans identified as potentially poor value include Company Care No Excess, Company Health Plus Excess, and Complete Simplicity. Additionally, he noted that various plans beginning with Flex 125 also fall into this category.

From Irish Life Health, the Optimise Platinum plan, priced at €9,871 per year for an adult, was singled out as particularly expensive. Other costly plans from Irish Life include Business Plan Complete and Future Focus, among others.

While VHI Healthcare has phased out many of its older plans, Mr. Goode recommends that members review their coverage for plans such as Advanced Care Extra and Premium Care before renewing.

Insurers Respond to Concerns

The findings prompted feedback from the three main health insurers. Laya Healthcare stated that it regularly reviews its products for its over 700,000 members to balance affordability and choice. Recently, Laya has retired ten plans and introduced new offerings that provide competitive pricing for private hospital coverage.

Irish Life noted its commitment to continuously monitoring its plans and providing a variety of options tailored to individual needs. The company encourages customers to reassess their coverage annually to ensure it aligns with their requirements.

VHI Healthcare emphasized its diverse range of products designed to meet different member needs. They encourage policyholders to consult with qualified advisers for a comprehensive review of their plans as they approach renewal.

In light of these developments, Mr. Goode cautioned against the assumption that corporate plans are always safe. Many of these options are also outdated and may not offer good value.

Consumers should consider the following plans as potentially lacking value:

Laya Healthcare: Company Care Gold, Company Care No Excess, Company Health Plus Excess, Company Care Choice, Company Care Plus, Complete Simplicity, Empower Secure, Essential Plus Excess, Essential Plus, Momentum, Simply Connect Plus, Simply Health Excess, Total Health Select, Flex 125 range.

Irish Life Health: Optimise Platinum, Business Plan Complete, Business Plan Extra, Future Focus, Health Plan 02, Health Plan 05, Health Plan 09, Level 2 Complete Health, Level 2 Family Health, Level 2 Hospital, Optimise Gold, Best Ultimate 2, Family Focus, Hospital Focus.

VHI Healthcare: Advanced Care Extra, Advanced Care Extra Day to Day, Premium Care, Company Plan Extra Level 2.

As the renewal period approaches, consumers are advised to take a proactive approach to their health insurance, ensuring they are not overpaying for outdated plans.