IRISH LIFE HEALTH has today announced that it will increase its price plans from 1 January, 2024.
The changes will result in an average increase of 4.8% on its gross adult premium.
And while a small number of plans will have no increase applied, the remainder will increase by between 2.5% and 6%.
The changes will apply to new customers from 1 January and to existing customers at their renewal date from 1 January.
Irish Life Health said the increase is due to “ongoing, increasing demand for healthcare services”.
A spokesperson said this includes the “very significant and continued increase in the volume and size of claims”, which has been “driven largely through the private hospital network”.
The spokesperson also said that this “trend is consistent with Ireland’s overall health insurance sector which reported seeing a considerable increase in activity across all services post-pandemic”.
The total level of claims paid in 2022 rose by 16.5% when compared with 2021, to a figure of €2.93 billion.
The Health Insurance Authority has also reported a 54% increase recorded in outpatient, GP and other claims.
Irish Life Health managing director Ger Davis said that “increasing premiums is a very difficult decision” and added that “we remain focused on ensuring we minimise this as much as possible”.
He said Irish Life is “continuing to see significant increases in customers accessing care, with a 25% increase since 2019 in the number of people receiving treatment in private hospitals”.
He added: “While there is some continuing inflationary pressures (staff and utility costs) for hospitals and other care providers, this is thankfully at a lower level than we have previously seen.”
Meanwhile, the Health Insurance Authority (HIA) today explained that the “private health insurance market in Ireland gives discretion to health insurers to set the prices for their policies”.
“These prices are ultimately based on the cost of the claims that the insurers receive,” said a HIA spokesperson.
“If the number of claims or the cost of healthcare increases, prices can also increase.
“Due to medical inflation and an increase in claims volume since the COVID-19 pandemic, insurers have affected a number of price increases this year.
“This trend is consistent with an emerging global pattern post- COVID.”
The HIA said it “always encourages consumers to review their policy each year at their renewal date to ensure that their policy fits their health needs and budget”.
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