All 3 health insurers, Vhi, Laya healthcare (recently bought by AXA after a little over 8 years of ownership by AIG) and Irish Life Health have increased their premiums this year and in s instances twice in the one year. The main reason is the significant increase in claims for private and high tech hospitals (Blackrock Clinic, Beacon Hospital and Mater Private Dublin). The presence of Covid saw patients put off elective surgery and minor procedures until the hospitals opened again. However, the landscape is now somewhat different, and the hospitals have the upper hand in negotiations with the health insurers looking for an increase in the charges for hospital stays (general, cardiac and listed special procedures and day case & side room procedures) due to full, or nearly full bed occupancy.

A hospital bill in a private or high tech hospital is made of 3 components:

1. Procedure Cost
2. Accommodation Cost
3. Consultant Cost.

The hospitals agree costs with an insurer for usually 1-3 years and inflationary pressures will mean that the private hospitals will not only charge more for their services, but the health insurers will then need to pass on these increases, by way of higher premiums to their customers. With over 338 plans (Source: HIA Quarterly Report on Health Insurance Q2 2023) available to consumers, corporates and companies, one might have a better more affordable option available within the market.

If you, as an individual or a company, are looking to reduce household or company expenditure, be careful what your next step is, especially if you are thinking of cancelling your cover, irrespective of the state of your health.

Call our office on 01-4030700 to see how we can assist you in your choice.