HEALTH insurance customers are set to face a major blow as a huge provider is planning is hiking prices. Laya Healthcare is set to bring up its premiums by an average of 6.5 per cent for an estimated 700,000 customers in October.
The company explained that the price hike is needed due to the increased demand for services and rising costs. This comes after the company announced a seven per cent increase in costs in April, as well as another last October. The new prices are set to come into effect from October 1.
Dónal Clancy, Managing Director at Laya Healthcare told RTE: "While advances in modern healthcare, including new technologies and high-cost drugs are delivering better outcomes for our members, they are significantly driving costs up, particularly in private and hi-tech hospitals. "A pricing and product review is needed in order for us to meet the current and future needs of our members." Laya has said that there are now more members accessing more healthcare services than ever before.
In the first half of 2024, the company has seen an 11 per cent increase in private hospital costs compared to the previous period. This has risen due to cardiology and cancer claims, as well as high drug costs . They have also announced that benefit changes will also be introduced in addition to the price hikes.
These changes are set to be communicated directly to members who will be impacted ahead of their renewal. The new changes include a "per visit" excess on the QuickCare benefit. This will give fast access to treatment for minor injuries or illnesses in specified centres.
The excess amount will vary depending on the level of cover a customer has. The Health Insurance Authority said that while they are aware of the price hikes, the insurance market in Ireland is an open market and therefore, companies can make changes as they please. The HIA said: "While we are aware that these price increases may have an impact on some consumers, the health insurance market in Ireland is an open market, and insurance providers can make price changes as they see fit.
"These prices are based on the cost of the claims that the insurers receive. There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims. "According to our latest Annual Market Report, the total level of claims paid by insurers in 2023 rose by 15% on the previous year, and there was a slight increase in claims for private hospitals.
" They added that customers are also free to move to any other plan on the market once their renewal date comes around. They have encouraged anyone with health insurance to renew their policy each year to ensure it reflects their current needs. The HIA added: "Consumers are free to move to any plan on the market at their renewal date, and we encourage everyone with health insurance to review their policy each year to make sure that they are on the right plan for their current lifestyle and health needs.
"Our helpline is open, and we are available to provide information about health insurance, answer questions and give information to help consumers find a health insurance plan that fits their budget.".
