THE government has been urged to take action to get the cost of health insurance under control as households across Ireland fork out an average of €1,886 for their premium.
Irish Life Health, VHI and Laya all confirmed price increases on their policies in November and October of this year.
It comes after it was confirmed that the health insurance levy will go up by another €48 a year per adult from next April, with experts warning the increase is almost guaranteed to be passed onto insurance customers.
Irish Life Health, which increased its premiums in January, April and October, confirmed its prices will rise again by an average of five per cent.
The company, which has around 500,000 customers, confirmed the price hikes will apply for both new and existing customers whose renewal is due from January 2026 onwards.
VHI and Laya also increased their rates from October 1 by 3 per cent and 4.5 per cent respectively whilst new entrant Level Health confirmed its current rates will hold until February 1.
And Sinn Fein Finance spokesperson Pearse Doherty blasted the “alarming” increase of prices in the health insurance sector and called on the government to get prices under control.
He said: “The average cost of health insurance is now €1,886 and increasing at an alarming rate. This effects over 2.5 million people in the state.
“This is the third year in a row where we have seen double digital increases in the cost of health insurance.
“Despite this we have seen no action from the government to try and get to get a grip on these runaway costs.
MOST READ ON THE IRISH SUN
“The state provides substantial support to the private insurance sector through direct tax subsidies. That support needs to be conditional on greater levels of transparency around pricing.”
Health insurance expert Dermot Goode told RTE that the latest health insurance price increases could not come at a worse time.
He said the hikes mark a “perfect storm” for health insurance consumers as nearly half the market – around 1.25 million people – are due to renew their cover between December and February.
The health insurance authority confirmed that there has been an over 10 per cent increase in prices over the last 12 months, leading to Doherty calling for the government to tighten regulations to protect consumers.
TIGHTER REGULATIONS CALL
The Donegal TD said: “The health insurance market is dominated by only three companies. Just two weeks ago we saw one of the private health insurance companies announce that their profits had doubled.
“In the absence of greater levels of competitive in the market for private health insurance we need tighter regulation to protect customers.
“The rapid increase in the cost of health insurance is not sustainable.
“The government cannot continue to ignore the pressure this places on people, especially older people as they desperately try to maintain coverage now that they are most likely to need it.”
In November, the Health Insurance Authority confirmed a rise in the health insurance levy.
€500 MORE YEARLY
The levy, also referred to as stamp duty, helps fund Ireland’s community rating system and helps ensure everyone can buy the same health insurance policy at the same price – regardless of age, medical history or risk level.
The change will come into effect on April 1 and Daragh Cassidy from Bonkers.ie warned that it’s likely to push up the cost of cover for hundreds of thousands.
He said: “Consumers are already under pressure after multiple rounds of price increases from the major insurers over the past few years.
“This year alone, VHI, Laya Healthcare, and Irish Life Health have all increased their prices twice.
“This means that many families were already looking at paying up to €500 a year more for cover come their next renewal, which for the majority of customers is between now and early January.
“However the increase in stamp duty is almost guaranteed to be passed on too, meaning policyholders can expect yet more price hikes into 2026.”
