Health Insurance Prices set to Climb Again in 2025
Table of Contents
- 1. Health Insurance Prices set to Climb Again in 2025
- 2. Health Insurance Costs on the Rise: What You need to Know
- 3. What advice would you give to individuals and families trying to manage rising health insurance costs?
- 4. Navigating Health Insurance Price Hikes: An Interview with Liam O’Connell, Consumer Advocate
Health insurance costs are on the rise once more, wiht multiple companies announcing premium hikes. VHI, one of Ireland’s leading health insurers, has already implemented three price increases in less than a year. now, Laya Healthcare is expected to follow suit with an increase in April, with Irish Life Health anticipated to raise prices later in the summer.
The trend doesn’t appear to be slowing down. Experts predict further increases from various health insurance providers throughout the year. This continuous cycle of price hikes could result in a staggering €500 added to the annual cost of coverage for a typical family, mirroring the rise seen in the previous year.
Adding to the financial strain, the levy on health policies is projected to rise by €49 per adult starting in April. This annual levy plays a crucial role in supporting the community rating system, which ensures everyone, nonetheless of their health status or risk factors, has access to the same health insurance policy at the same price, known as risk equalisation.
“Consumers need to be prepared for more price increases as we work through 2025,” warns health insurance expert Dermot Goode.
“Healthcare costs continue to rise as more people are accessing essential healthcare services.”
Last year witnessed a series of price increases from various health insurance providers, highlighting the ongoing financial challenges within the sector.
Health insurance premiums are set to rise again, with VHI, Ireland’s largest health insurer, announcing a 3% increase for most of its plans beginning in March. This latest hike follows two increases in 2022 – a 7% rise in March followed by a 3.5% increase in October – and a handful of smaller increases at the start of this year for plans that hadn’t been affected previously.
The rising costs come as a blow to consumers who were hoping the entry of a new competitor, Level Health, backed by Aviva, would put downward pressure on prices. However, health insurance providers point to a surge in demand for private healthcare and soaring medical inflation as the primary drivers behind the continued price hikes.
Private hospitals and clinics, experts say, have become increasingly efficient at treating larger numbers of patients, leading to a higher volume of claims for insurers. This, coupled with the ongoing cost pressures on the healthcare system, is putting considerable strain on health insurance companies.
Mark Goode of Total Health Cover, a Lockton company, estimates these latest VHI increases will add between €79 and €216 to the annual cost of coverage for a family with two adults and two children.
“For a retired couple insured on one of VHI’s more expensive schemes, this could add anything from €220 to €300 to the cost of their cover,”
Goode noted.
The cumulative effect of these price increases, both last year and the impending one in March, means consumers could be facing price hikes of up to 9% by the next quarter.
Health Insurance Costs on the Rise: What You need to Know
Health insurance premiums are increasing,putting a strain on household budgets. According to industry expert Mr. Goode, these increases can be substantial, with some families facing an extra €350 per year on their coverage.
“For those on the One Plans or the Enhanced Care schemes, their cumulative increases might potentially be much lower as VHI has discounted the child cost on these plans,” Mr. Goode explained.
Mr. goode cautions consumers to be wary of average figures,as the actual increase impacting their plan could be considerably higher.
With rising healthcare costs,it’s more crucial than ever to understand your health insurance plan and shop around for the best value.
Consider exploring different plan options and comparing benefits to ensure you’re getting the right coverage at the most affordable price.
