AN Irish health insurance company is set to hike its premiums from the start of next year again.
Irish Life customers will be slapped with massive increases of 3.7 per cent on average from January 1, according to the Irish Independent.
The insurer already slapped customers with increases twice this year in January this year and July.
The increases are set to affect all customers who renew in the coming months.
And the move could potentially see the price of plans rise by hundreds for families.
Any customer who is due to renew their plan from January 1 onward will be hit with the latest hikes.
It is understood that some plans are expected to increase by 4.3 per cent with the latest premium increase.
However, there is expected to be a reduction on some schemes available for children.
The health insurer has said that the industry is seeing continued increases in the cost of health care.
And they cited high-cost medications as a major factor in this price rise.
Speaking with the Irish Independent, Irish Life Health managing director Ger Davis said that there have been significant increases in day-to-day benefit claims.
He explained that this is because customers are now more proactively managing their health and seeking medical advice and diagnostics.
He said that the number of such claims made to Irish Life have doubled in volume since 2021.
Davis said: “The sustained demand for health care and associated claims cost inflation has regretfully led to the need for increased prices across the health insurance market.
“We understand that customers are dealing with rising prices on a number of fronts and we have taken steps to mitigate our level of increase, and in some instances applied decreases where possible.”
He also told the publication there will be a 2.5 per cent reduction on the price of First Cover – which is set to cost €500 annually.
As well as reductions in price for children’s packages such as the My Plan and Benefit plan of 19 per cent to €200 per child.
NEW COMPETITION
This comes despite the emergence of a new health insurer who was expected to spark a potential price war with other competitors amid shock plans to introduce “simplified” cover.
Level Health, the new insurer backed by Aviva, is led by a number of experienced industry insiders.
The insurer provides just four plans that aim to meet the needs of all and covers both public and private hospitals throughout the country.
This includes “unlimited access to the most innovative tele-medicine services” as well as access to healthcare professionals on a 24/7 time period through video calls and messaging apps.
It also gives customers access to discounts on Aviva‘s home and motor products, as well as free personal accident cover.
They promise that the average family of four will now be able to save €500 when swiching from Laya, VHI or Irish Life when it comes to their plan C coverage.
On all plans, children under three are free.
Jim Dowdall, CEO of Level Health, said: “The launch of Level Health marks a pivotal moment for a broken Irish health insurance market.
“For too long, customers have been overwhelmed by confusing plans, limited options, and a lack of real alternatives.”
