Health Insurers Hike Prices Again; Average Premiums Near €2,000

UPDATE: In a troubling trend for consumers, Ireland’s major health insurers have announced repeated price hikes this year, raising urgent questions about the sustainability of health coverage. Just last week, Irish Life Health revealed a staggering average increase of 5% on adult premiums, set to take effect in January 2026. This follows multiple increases by all major providers, with some raising prices as often as four times within the last twelve months.

The Health Insurance Authority (HIA) reports that the average cost of health insurance plans has surged by 8% since the start of 2025, pushing the average premium for adults to €1,886. Experts warn this figure could reach €2,000 by year-end, representing a shocking 10% annual increase.

The reasons behind these hikes primarily stem from escalating healthcare costs and a rise in insurance claims, particularly in the wake of the Covid-19 pandemic. Despite claims growth slowing sharply—less than half the rate of 2023—insurers continue to raise prices. “The old rules are gone out the window,” says health insurance expert Dermot Goode, stressing that companies are now adjusting rates on a month-to-month basis.

Both Laya Healthcare and VHI have implemented two price increases this year, with average hikes ranging between 3% and 6.6%. VHI, which commands nearly half of the Irish health insurance market, cited claims costs and innovative services as reasons for the adjustments, having paid €1.74 billion in claims in 2024 while collecting €1.88 billion in premiums.

Amidst these changes, Labour Party TD Marie Sherlock expressed concern over the lack of transparency from insurers regarding the reasons for these increases. She noted that many businesses across various sectors are raising prices, often blaming inflation without just cause. The HIA clarified that insurers set their own prices based on medical inflation and claims costs, with no regulatory limits on premiums.

The frequent timing of these price hikes typically clusters around April and October, creating a cycle of financial strain for consumers. Goode warns that many who auto-renew their policies may overlook previous increases, potentially leading to unexpected premium jumps. He advises consumers to actively review their coverage each year to avoid falling victim to rising costs, stating, “It’s a perfect storm right now for consumers. Rates are going through the roof, but benefits are also being cut.”

The pressure on consumers is compounded by long waiting lists for public health services, prompting many to seek private insurance despite the diminishing returns on their significant investments. Goode highlights that individuals paying over €2,500 annually might not be receiving adequate value for their money, with some facing premiums as high as €10,000 for policies that could be obtained for half the price.

As the new year approaches, consumers are urged to shop around for better deals and to reconsider their existing policies. Goode emphasizes that insurers are becoming “creative” in catering to corporate clients but warns that average consumers may not be aware of the advantageous policies available to them.

With health insurance costs on the rise and no clear end in sight, consumers in Ireland must brace themselves for potential increases and take proactive steps to ensure they are not overpaying for their coverage. The urgency of the situation cannot be overstated—failure to act now may lead to even higher costs in the future.

Stay tuned for further updates on this developing story as the situation unfolds.