Health Insurers Raise Premiums Again: Irish Life and Laya Hike Rates

Two major health insurers in Ireland have announced significant increases in their premium rates within a week. Effective from October 1, 2023, Irish Life Health will raise the cost of 99 of its plans by an average of 3%. This change may add as much as €185 to a family’s annual health insurance costs. The announcement follows closely on the heels of Laya Healthcare, which revealed a 4.5% hike on 84 of its 116 plans, also starting on the same date.

These increases are part of a troubling trend within the industry, as the three primary health insurers have implemented multiple price rises over the past year, with hikes now occurring almost monthly. Dermot Goode, a health insurance expert, indicated that the recent changes could result in additional costs ranging from €25 to €70 per adult, depending on their specific plan. For a typical family of two adults and two children, this could lead to a total increase of between €60 and €185.

Continuing Pressure on Premiums

Irish Life Health has increased its rates multiple times in the past year, including a 3.7% rise in January and nearly 2% in April, primarily to address a levy increase. Additionally, a further 10 plans experienced minor adjustments in July. Goode forecasts that consumers can expect regular price hikes to continue as insurers prepare for the peak renewal period that begins in October, when over half of the market, approximately 1.25 million members, renew their coverage.

Managing Director of Irish Life Health, Ann Marie Nestor, emphasized that rising healthcare delivery costs are a significant factor driving these premium increases. “These rising costs are driven by growing demand for complex treatments, advances in medical care, and ongoing investment in healthcare infrastructure,” she stated. Nestor noted that while these advancements improve patient outcomes, they also contribute to the overall rise in healthcare expenses.

Nestor acknowledged the challenges posed by these price increases for many households. “That’s why we’re committed to offering a wide range of plans to suit different needs and budgets,” she added. She also mentioned that Irish Life Health is streamlining options to facilitate easier choices for customers regarding their coverage.

Industry Developments and Consumer Impact

Earlier in August, Irish Life Health announced the retirement of 22 health plans, many of which were considered outdated and may no longer provide good value for money. This move reflects a broader strategy among insurers to adapt to changing market conditions and consumer needs.

Laya Healthcare, which operates with over 700,000 members, is also witnessing the impact of the current pricing strategy. Following its latest announcement, some families will experience an increase in their plan costs by more than €700 annually. This marks the second price hike from Laya Healthcare this year, demonstrating the ongoing volatility in health insurance pricing.

As consumers brace for these increases, the health insurance market in Ireland continues to confront significant challenges. Rising costs of healthcare delivery coupled with the need for insurers to remain competitive may mean that consumers will need to navigate a complex landscape in the coming months.