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62 FINANCE
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Beating health cover increases
MATTERS
There is money to be saved by shopping around before renewing health cover, writes Ivan Ahern
Health insurance in Ireland used to be about hospital cover and hospital cover only. Today it has grown substantially in terms of benefits that can be used every day with regular plan developments by the three providers in the market Laya, VHI and Irish Life Health. Up to 2016, provid- ers would have regularly introduced price increases, on occasion up to 20%. Custom- ers usually become aware of the increase when it’s time to renew their policy. The normal pricing cycle changed during 2017 when all three providers began to apply price freezes, with some plans even enjoying price reductions.This cancelled out an imme- diate need for customers to shop around to get the best value when renewing their cover. As of June 2019 the freeze ended and prices are rising again. VHI increased prices by an average of 6% (some up to 10%), in August 2019. This followed Irish Life Health increas- ing prices by an average of 3% in June, while Laya Healthcare applied increases of a similar percentage in July. The main reason cited for the increases relate to a recent spike in claims received by providers during the back end of 2018 and throughout 2019. The cost of claims has also increased, meaning the providers are paying out more each month for claims. It’s important to remember if you’re looking to take out health insurance for the first time, or looking to renew your policy, that there is an abundance of benefits and options for customers in 2019 in compar- ison to previous years. Your plan should be built around your lifestyle needs and the needs of your family. If you’re worried about your current plan, don’t be. You can change to a plan which better suits your needs in terms of benefits and price. When you receive your renewal notice from your provider, the message is simple: don’t renew your cover until you review it. You could be missing out on significant sav- ings by failing to shop around every year. There is only a short window to review your cover before you are tied into a new 12-month contract with significant finan- cial penalties for cancelling early. Save some
Table 1: Premium comparison January to November 2019 Jan 2019 August 2019 Premium increase % increase Alternative Alt price Saving
8. 6
VHI Healthcare One Plan Family Irish Life Health Nurture Plus ILH Laya Healthcare Fex 175 Explore
€1,130
€1,227 €97
PMI 3713 €1,148 €79
€1,206 €1,271 €65
5.4
4D Health 1 €1,089 €182
€1,125 €1,247 €122
10.8
Signify Plus €1,050 €196
Table 2: Total savings generated by switching to alternative cover Adult Child Total cost Alternative plan Adult Child Total Total saving
VHI Healthcare One Plan Family Irish Life Health Nurture Plus ILH Laya Healthcare Fex 175 Explore
€1,130 €239 €97 PMI3713 & One Plan 150
€1148
€198 €2,692 €241
€1,206 €236 €65 5.4
4D Health 1 €1,089 €169 €498
€1,125 €393 €122 10.8
Signify Plus €1,050 €249 €682
for the best plan per individual •Young adult (18-25) discounts may be available. These are not available on all plans so ask about them •Watch out for special offers: if they coin- cide with your renewal, then you can avail of them, these are usually quite well advertised, eg. half price kids etc •Check out the corporate plan equivalent of your own plan – corporate plans don’t suit everyone but the benefits and pricing tend to be attractive •Review your plan annually to ensure your cover is up to date and competitive. Don’t overpay for your cover, call Corn- market to review the market for you. Tel:01 4160230. Ivan Ahern is a director at Cornmarket Group Financial Services Ltd The information contained in this article has been sourced from the Health Insurance Authority,www.hia.ie in July 2019 and is the copyright of the HIA. Cornmarket Group Financial Services Ltd.is regulated by the Central Bank of Ireland.Amember of the Irish Life Group Ltd.which is part of the Great-West Lifeco Group of companies.Irish Life Health dac is regulated by the Central Bank of Ireland. Vhi Healthcare DAC trading asVhi Healthcare is regulated by the Central Bank of Ireland.Laya Healthcare Limited, trading as Laya Healthcare and Laya Life,is regulated by the Central Bank of Ireland.Telephone calls may be recorded for quality control and training purposes
money for something else this year and review your health insurance cover. Table 1 shows current plans with alter- native plan options that offer similar cover at a cheaper price. If you compare the pre- mium from January to today’s prices, some plans have increased by over 10% during that time. Avoid a premium increase and switch your plan to the alternative option. The alternative plans listed above are ‘corporate plans’ and all three providers offer a range of these plans. Customers are often unaware that these corporate plans are available to them and often provide a stronger level of cover at a lower premium to the consumer alternative. What’s more, if you have your whole family insured on the same plan and opt to insure adults and children on different plans at your renewal, the savings multiply (see Table 2) . Don’t forget •Take on an excess: This is the initial amount of the claim you pay and options range from €75-€500. The higher the excess, the lower your premium will be •Split your cover: All family members do not have to be on the same plan. Shop
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