Laya Healthcare is increasing its prices by an average of 6.6 per cent from the beginning of April.
The second largest health insurance provider in the State blamed higher claims costs and said waiting lists in the public system were pushing people towards private healthcare, which was leading to prices climbing at an unsustainable level.
Depending on the plan held, the price increase could add between €80 and €240 to the annual cost of cover for a single adult.
It also comes on top of a similar increase the company imposed last October.
It also pointed to an increase in the Government levy on health plans which, it said, accounts for about third of premium prices.
Laya said its overall claim costs have risen by 29 per cent over the past two years with demand significantly growing across private and high-tech hospitals.
It said last year it paid 13.4 per cent more in private and hi-tech claim costs compared to 2023 with the increase driven by a rise in cardiology, orthopaedic, ophthalmic and cancer claims, all of which are up by an average 20 per cent.
Meanwhile, drug costs in private and hi-techs have increased by 31 per cent the company said.
The Advanced levy will increase by €49 per adult and €16 per child from 1st April 2025, which is an additional €130 for a family of two adults and children.
Laya also noted long waiting lists and overcrowding in the public system, which “are pushing more patients to private and hi-tech hospitals, driving up costs unsustainably”.
The company’s managing director D.O. O’Connor said that while it was “supportive of the Government’s Sláintecare plan to deliver more equitable access and greater capacity in acute public hospitals” the “real surge in capacity is happening in private hospitals, where investments in new facilities have ramped up to meet soaring demand.”
He said Laya had done “everything we can to keep cover affordable for our members – our priority now is to negotiate the best care for our members in the most appropriate setting and at the most appropriate cost.”
He said that is the cycle of premium increases “which is a growing issue across all insurers” and “more must be done to deliver value and cost efficiencies across the healthcare system and we intend to fight tooth and nail on behalf of our members on that front”.
Announcing the hike, the company highlighted a free kids offer on six popular schemes that it said could save families more than €550 as members pay for one child and the rest go free. The limited term offer is available until June 30th.
In response to the price move, the Health Insurance Authority (HIA) noted that across the sector, prices have increased by 11 per cent on average in the first three quarters of 2024 with many consumers facing price increases when they renew this year.
“These ongoing price increases can be attributed to a continued rise in healthcare costs as well as a sharp increase in demand for healthcare,” a spokeswoman said. “We encourage all consumers to review their plan each year before they renew and to consider shopping around and switching.”
Dermot Goode of Totalhealthcover.ie noted that the actual increase" could exceed the quoted average figure or could even be lower if you’re lucky to be on the 30 plans not impacted by this hike.
He also highlighted recent increases from other market players. Irish Life Health already increased their rates again from 1st January by an average of 3.7 per cent, and the VHI have just announced their latest increase of 3 per cent.
“For the past two years, each of these insurers has had two increases per year and we can’t rule out further increases towards year-end depending on the claims experience," Mr Goode warned.
