The cost of some private health insurance plans jumped by more than 25 per cent last year, with an average price increase of in excess of 12 per cent, according to new data from the watchdog overseeing the sector.
The annual market report from the Health Insurance Authority (HIA) also indicates that people over the age of 65 are paying 44 per cent more for cover than the average, mainly as they tend to have policies with higher benefits.
The number of people with private health insurance continues to grow despite average prices increasing by 12.2 per cent and the price of some plans climbing by as much as 25.6 per cent the HIA said.
A total of 2.52 million people now have private cover representing 46 per cent of the total population.
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The annual average annual premium of €1,740 recorded last year was up almost €146 on the 2023 figure.
The HIA also noted that the rate at which people are taking out cover was slowing, with an increase in coverage of just 1.3 per cent between 2023 and 2024.
There has also been a further fall in the number of children insured at 21.6 per cent down from over 23 per cent in 2019.
Total annual income from health insurance premiums now stands at €3.6 billion, an increase of from €3.2 billion in the previous year, which can be attributed to the price increases on premiums and the moderately increasing numbers purchasing health insurance in the past 12 months.
After a significant increase in claims in the years post-pandemic, the volume of claims shows signs of slowing down, increasing by just 6 per cent in 2024 compared to a 15 per cent surge in 2023.
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While claims for treatment in a private hospital increased by 2 per cent in 2024, public hospital claims were 2 per cent lower during this period.
All the State’s private health insurance companies have increased their prices in recent months, with the VHI, Laya and Irish Life Health all rolling out at least two hikes during the year, blaming an increase in claims and the higher cost of treatments.
“Despite recent price increases, our report shows more people are buying health insurance, with almost half of the population holding health insurance policies. So it’s clear it is a product that many people in Ireland value,” said the HIA’s chief executive Brian Lee.
“However, our research shows that affordability is the main reason consumers choose to cancel their health insurance plans as many consumers are under financial strain and can’t sustain the current rate of price increases alongside other increasing costs and inflation.”
He noted that the number of consumers switching providers was still low and said consumers should shop around for the best value.
There are 338 active inpatient plans in Ireland, but 50 per cent of people are on one of just 32 plans.
