While more options generally prove advantageous for customers, at times, an excessive number of alternatives tend to plunge people into confusion, making them hesitant to make decisions. This often leads to unwarranted expenses, a scenario prevalent over the years in the health insurance sector. This market presents an overwhelming amount of policies, often with incomprehensible names, each covering an extensive range of intricate medical procedures and using jargon that further confuses consumers. Currently, just three providers offer 348 disparate health insurance policies, a number set to approach 400 with Aviva’s forthcoming market re-entry.
The challenge for consumers not only lies in the vast array of choices but also in finding a policy that suits their specific needs and budget. The escalating costs primarily reflect the growing expenses of medical procedures. However, insurance providers frequently fail to proffer clear guidance that would assist consumers in selecting the most suitable and cost-effective insurance product.
According to a recent report by the Health Insurance Authority (HIA), the regulatory body for this sector, the market has become too complex. The HIA have urged both insurers and policymakers to work together to simplify and make the system more competitive, transparent, and user-friendly, stating that consumers often find it challenging to navigate through the abundant product options and complex terminology.
Facilitating the ease of switching policies is also important. Policy costs have risen by an average of 7% this year alone, burdening many households with hundreds of extra euros. Although comparing prices could result in savings, over 70% of the 2.5 million individuals with health insurance have never changed their provider. The HIA has reported a significant increase in the viewpoint that changing providers is too troublesome.
Legislative modifications may be required to streamline the market, yet this process would be time-consuming and the legal pathway isn’t clearly defined. In the interim, efforts will be taken to identify improvements that can be initiated “voluntarily” to make the market more advantageous for customers. Whether this will yield any significant results remains uncertain. Insurers should prioritise their customers’ needs and aim to make the market less complex and more open. If they fail to do so, it becomes inevitable that legal measures will be necessary.
Simultaneously, the continual requirement for costly health insurance mirrors the sluggish advancements in sector reform, notwithstanding the significant additional funding it’s receiving. Individuals continue to pay for health insurance not solely for added benefits, like superior hospital accommodation, but also to secure basic medical service within a fair scheduling period, avoiding the lengthy waits in the public system.