The Health Insurance Authority (HIA) in Ireland has warned that the country’s health insurance market has become excessively complex, leading to consumers overpaying for coverage. The HIA’s newly appointed CEO, Brian Lee, assured that they will take any required measures to bring clarity to the market and secure the best value for customers. A report released before a conference discussing proposals for simplification revealed that adult premiums have increased by an average of 7% to €1,674 since the start of the year. This is more than triple the running rate of general inflation, costing many households more than €500 annually. Many of the 2.5 million privately insured individuals could save money by switching providers at renewal time. However, with 71% of the market never switching providers and half of those who have switched having only done so once, the perceived difficulty of switching is a notable issue. With 348 different health insurance options and more coming with the return of Irish Life to the market, consumers are overwhelmed. The HIA aspires to simplify the sector and improve its transparency, and has urged both insurers and policymakers to work together towards a more accessible and competitive market.
The authority has expressed its dedication to creating a health insurance market that is easier to navigate, more competitive, and more beneficial for customers. A recent announcement revealed an average 6.5% increase for Laya Healthcare’s 700,000 customers. The authority plans to join forces with legislators, the Health Department, the Central Bank, health insurers and policy holders to streamline and simplify the market.
Mr Lee noted that in some countries, the range of product options is legally limited. Some countries also require policies to be classified into categories such as Gold, Silver and Bronze to help customers easily identify the ones that provide the most extensive cover. Legislative changes have been put forward for discussion, and the Health Insurance Authority (HIA) plans to cooperate with the Health Department to review any potential changes. He acknowledged that such changes would be necessary.
In case no legal alterations are made, the authority will collaborate with insurers voluntarily to see how the market can be improved and simplified. He emphasised that there are certainly opportunities for consumers to save money.
To assist customers, the HIA is creating an enhanced comparison tool, which they aim to roll out in 2025. The tool is designed to simplify the selection process for customers by enabling them to choose the best plan for their needs.