Entry-level plans now outdated and don’t offer best care options – but many people have not updated their cover
Tomorrow is the 11th anniversary of the introduction of the system that penalises those over the age of 35 taking out health insurance for the first time.
Some 100,000 people rushed to take out cover before age-related penalties kicked in, but around half of these ended up on expensive and poor-value cover, according to Dermot Goode to Healthinsuranceireland.ie.
The measure is known as lifetime community rating. It put in place penalties for those over the age of 34 who took out health cover for the first time.
This meant that a 40-year-old joining for the first time would have a six-year loading that would add 12pc to the gross cost of their cover.
Eleven years on, many entry-level plans that cover public hospitals only are expensive and represent poor value for money
Mr Goode said up to 50,000 people had stayed on poor-value health plans they had first taken out 11 years ago. Many of the entry-level plans taken out by these people cover public hospitals only.
Mr Goode said: “Eleven years on, many entry-level plans that cover public hospitals only are expensive and represent poor value for money.”
He said the good news was that the best-value entry-level plans now cost as little as €500 per adult.
About 100,000 people rushed to take out cover before before the penalties, but now they may be getting poor value. Stock image: Getty
Today’s News in 90 Seconds – Thursday, April 30
But many people are overspending on dated plans such as Laya schemes like Assure Vitality at €732 or Essential Assist at €1,213.
He added that Irish Life Health schemes – such as Select at €938, Select Starter at €749, Day to Day Focus at €1,212, and Irish Life’s Net One scheme at €1,045 – were now dated.
People who wanted entry-level cover at the lowest cost should consider VHI’s Public Plus Care at €500 per adult; Irish Life’s First Cover at €511 per adult; Level Health’s Plan A at €493 per adult; or Laya’s Assure Protect at €593 per adult a year.
People who have not changed plan since they rushed to take out entry-level plans more than a decade ago may also be missing out on discounted or free cover deals for any children under 18.
They mistakenly believe they have the best deal by opting for the same entry-level plan for all the family
Mr Goode said Level Health was giving free cover on most of its plans for children under three. It also gives a 50pc discount on certain plans for those aged three and 17.
Laya is also giving free cover for the second and subsequent child under 18 on specific plans such as Flex 125 Choice.
“For those with young families, they mistakenly believe that they have the best deal by opting for the same entry-level plan for all the family, which is not the case at all,” Mr Goode said. “They don’t realise that they can split the cover to track the best deals across the market.”
Splitting the cover means putting different family members on different plans.
Mr Goode said it was concerning that many people on entry-level plans they took out to beat the introduction of lifetime community rating believed they still were holding quality health cover.
He said this was often not the case on these entry-level plans.