Irish Life Health has become the second major health insurer this week to announce unwelcome price increases, with plans rising by an average of 3% from October.
The increase affects the company’s half million customers and marks the third price hike within a year for Irish Life. The insurer previously raised rates by 3.7% in January and just under 2% in April to cover levy increases, with ten additional plans seeing small increases from July 1st.
The announcement follows Laya Healthcare’s decision earlier this week to increase 84 of its 116 plans by 4.5% from the same October date.
The Health Insurance Authority acknowledged that “price increases are unwelcome, particularly during a time of rising living costs,” while noting that insurers remain free to set prices based on commercial factors including medical inflation and claims costs.
Health insurance expert Dermot Goode warned that regular price hikes throughout the year are “set to continue,” with further increases expected as insurers prepare for the peak renewal period from October when over half the market renews coverage.
According to Goode, Irish Life’s latest increase could cost individual adults between €25 and €70 depending on their plan, with typical families facing additional annual costs ranging from €60 to €185. Customers on outdated plans may face even higher increases.
Goode strongly advised consumers to “never just accept these increases” and avoid allowing coverage to auto-renew. Instead, he recommended contacting insurers well before renewal to challenge them to source similar coverage at lower premiums.
“All members should not be afraid to disclose their budget for the coming year, and have insurers fully explain the benefit differentials of any alternative plan,” Goode said.
The Health Insurance Authority confirmed that consumers will be informed of all changes to their plans, including price or benefit modifications, in their renewal letters.