HEALTH INSURANCE PREMIUMS for Laya Healthcare customers are to increase by 6.6%, on average, from 1 April.

The company has blamed the price hikes on increasing government levies placed on health plans and jumps in the use of ‘hi-tech’ hospitals and medicines last year.

All of Laya’s plans are to increase under the hikes, a statement from the company said. It pointed to a €49 increase and a €16 increase in government charges for adult and childrens’ plans, respectively.

According to managing director D.O O’Connor, the review of its pricing was “necessary” to ensure the sustainability of Laya’s service for its members. He said that there has been a 29% increase in its membership receiving care at “hi-tech” hospitals.

There have been particular cost increases in cardiology, orthopaedic, ophthalmic and cancer claims – up on an average of 20% – according to the company. Separately, hi-tech drug costs and claims increased last year, it added.

O’Connor pointed to the role that private hospitals have been playing at a time where waiting lists for public healthcare are long, claiming that their increased use has driven up costs “unsustainably”.

“We’re doing everything we can do to keep cover affordable for our members,” O’Connor said. “Our priority now is to negotiate the best care for our members in the most appropriate setting and at the most appropriate cost.”

In response, Laya is retaining it’s ‘free kids’ offer – where families only pay for the cost to include one child on their health insurance plan. Access to care and medicines will remain the same, including at Laya clinics in Dublin, Cork, Galway and Limerick.

It is the second time in six months that premiums will increase for Laya healthcare members, after an average of 6.5% hikes in October. Dermot Goode, the head of healthcare at Lockton Insurance Brokers, has urged families to consider splitting their cover.

He said that today’s announced hikes mean that families may face between a €210 and €260 increase to their annual health insurance bill under Laya. He added that pensioners may see their annual cover costing over €600, factoring in October’s bump.

Goode also reminded customers that it is likely their premiums may be higher than the 6.6% increase cited as an average by Laya. His firm understands that 91 out of the 121 plans offered by Laya are set to be impacted.

The insurance boss highlighted recent fee increases by other firms, and suggested that their customers will have to wait and see if their providers choose to absorb the latest increases to the government levies or take similar measures to hike premiums.

He said: “The message to all consumers is clear; you must shop around for better value to avoid these price hikes.

“New plans are coming on stream all the time and there are numerous cost-saving tactics available to consumers to help them maintain good cover but at an affordable cost. Never ‘auto-renew’ your cover and if in doubt, get professional advice.”