Private health insurance customers are at risk of premium increases of up to 25%, coupled with diminished benefits, as we approach the peak season for renewals. This is according to specialists at Ireland’s Lockton Insurance Brokers. Dermot Goode, the healthcare division head at Lockton, warned on Monday of additional modifications that could greatly disrupt policyholders’ coverage and costs. He also noted that, particularly with VHI, the discontinuation of certain favoured schemes may result in people being switched to pricier options that do not cater to their requirements.
Goode cautioned that the cumulative effect of several price increases over the year is often overlooked by consumers. “Depending on the scheme, premiums could escalate by anywhere from 6% to 25%,” he stated. For instance, by October, the Laya Momentum plan will witness a 25% hike while VHI’s Advanced Care Extra scheme will see a 13% increase.
He also warned of the likelihood of many clients experiencing a reduction in benefits due to insurers implementing caps on refunds for GP visits, consultant expenses, and complementary therapies, coupled with raised excesses for private hospital treatments. He cited that “VHI has limited GP visit refunds to €40, while increased excesses are being imposed by Laya on popular schemes such as Inspire Plus – up from €50 to €75 for daytime treatment.”
Additionally, a significant shift is occurring due to insurers removing older schemes from their plans. B-Option by VHI was discontinued in May, impacting approximately 150,000 customers. Meanwhile, Irish Life Health retired 24 schemes in September.
Goode further advised consumers not to immediately accept the initial substitute offered when a scheme is retired, but to explore and possibly switch to a more affordable corporate plan. With several modifications anticipated, consumers have been urged by Lockton to seek expert guidance prior to renewing their health insurance and ensure their cover still fits their needs.
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