Number of people with private health insurance continues to rise, says HIA

The number of people with private health insurance continues to rise despite the enduring cost-of-living crisis and increasing premium prices, according to the industry watchdog’s annual report.

The Health Insurance Authority (HIA) said the market remained in a strong position in 2022 with demand for health services continuing to rebound from Covid times.

However, the impact of the pandemic remained visible on health services in 2022, though at a lower level than the previous two years.

While hospital activity increased relative to the steep reduction observed in 2020 and 2021, it remained lower than pre-pandemic levels.

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Last year saw a return to pre-Covid levels of day treatments in hospitals, while overnight stays had not yet returned to pre-Covid levels.

There were 2.44 million people with health insurance at the end of 2022, corresponding to 47.6 per cent of the total population, a 3 per cent increase on the previous year.

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VHI Healthcare’s market share was 48.4 per cent, Laya Healthcare had a 27 per cent market share and Irish Life Health had 20.5 per cent. However, market shares vary significantly by the ages of the insured.

At the end of 2022, VHI Healthcare insured 54 per cent of those aged 70-79 with insurance, compared with 72 per cent at the end of 2014.

The total level of claims paid in 2022 increased by 16.5 per cent on 2021.

Total claims paid by insurers in 2022 have exceeded claims paid in 2019 before the pandemic (€2.25 billion) for the first time since Covid-19 impacted claims on health insurance.

Feedback from consumer surveys commissioned by the HIA during 2022 showed that many consumers still find it difficult to understand their health insurance plans and compare options, particularly with more than 327 plans on the market.

“Last year we received over 3,000 calls to our consumer helpline, and almost 200,000 consumers used the HIA’s comparison tool at hia.ie,” said the HIA’s chairwoman, Patricia Byron. “We encourage all consumers to assess their level of coverage each year and compare products available.”

Up to one million people with health insurance are facing substantial price hikes when renewing their policies between now and the end of February.

Customers of Laya Healthcare who extend their health cover in the days ahead will see the cost climb by more than 10 per cent as two separate increases announced in recent months kick in.

Irish Life customers who have renewed since earlier this summer have already had two increases applied to their policies.

The State’s largest private health insurer, VHI, announced that its prices increased by an average of 7 per cent with effect from the beginning of this month. It is the second price increase the provider has imposed this year.

In March, the company, which has more than 1.1 million subscribers, said it would increase prices by an average of 4.8 per cent, blaming increased demand for healthcare and rising costs.