Health insurance premiums have increased by an average of 7% over the past six months, bringing the typical premium to €1,647, according to the latest report from the Health Insurance Authority (HIA). The regulator attributes this rise to healthcare inflation and escalating claims costs.
Despite the increase, nearly 47% of the population now holds health insurance, reflecting a 1.3% rise compared to last year. The number of individuals acquiring health insurance surged by nearly 6,000 in the three months leading up to the end of June, signaling a growing awareness of the importance of health coverage.
However, the HIA has expressed concern over low switching rates among policyholders. A striking 71% of those with health insurance have never switched plans, and among those who have, more than half have done so only once. Many individuals who choose not to switch report that they find the process complicated and daunting.
Currently, there are 340 health insurance plans available in the market, a multitude that the HIA suggests can overwhelm consumers. In an effort to address this confusion while maintaining market competition, the HIA is advocating for a simplification of the market, calling on insurers and policymakers to collaborate in streamlining the options available.
Brian Lee, CEO of the HIA, emphasized the importance of reviewing health insurance plans during renewal periods. “To consumers, we would say, if you are due to renew your health insurance, always take the time to review your current plan to ensure you’re on the best plan for you,” he stated. Lee reiterated the authority’s commitment to creating a more straightforward, competitive, and consumer-friendly health insurance market.
Recent announcements from several health insurers, including Vhi and Laya, indicate an average price increase of 7%, attributing the hikes to rising operational costs. Nearly 40% of health insurance holders have expressed willingness to switch providers for financial or benefit improvements, a notable increase from 2019 levels. However, these individuals indicate that they would require a cost saving of at least 22% to consider switching, a decrease from the 30% threshold noted in both 2021 and 2019.
The HIA report highlights that over 20% of policyholders are aged 65 or older, and those over 55 are particularly vulnerable to overpaying for coverage, often due to not reviewing their policies regularly.
The findings coincide with the HIA’s inaugural conference, which aims to address the future of the health insurance sector and explore ways to assist consumers in obtaining the most suitable coverage.