I am due to renew my health insurance soon, do you think it’s going to cost me more this year?

In a word – yes. The companies have been on a seemingly relentless round of price hikes over the past year and have increased the cost of many of their plans repeatedly.

And why are prices climbing?

The insurance companies highlight sustained increases in the cost of delivering healthcare and the increased use of more expensive, high-cost drugs among other things. Medical advances are certainly expensive and according to a report commissioned by Insurance Ireland late last year the cost of private claims has risen by more than a third since the pandemic.

Okay but why multiple increases every year? Surely one would cover it?

Some companies have announced as many as four different price increases in just over a year. It could be that medical inflation is so unpredictable that the companies are eternally befuddled. Or maybe they hope that by inching up their prices three or four times a year they will attract less negative attention than rolling out a single double digit price increase. The impact is the same though.

But price increases kick in as soon as announcements are made right?

Wrong. Health insurance is not like utilities or mortgages and when you take out a policy, the price is locked in for 12 months. If a company rolls on three price increases of 4 per cent between February 1st and December 1st and your contract is up for renewal in January you might find your premium climbing by 12 per cent with all the hikes kicking in simultaneously.

How much does it cost?

According to the Health Insurance Authority (HIA) the average premium in the third quarter was €1,886, an increase of 8 per cent since the beginning of 2025. That is per person so many typical families are paying well in excess of three grand a year for cover.

Are higher charges from insurance companies the only thing adding to the cost?

No. There is a stamp duty levy attached to private health insurance policies and that is going up by about 10 per cent from April. It will see most adult levies rise to €517 with the children’s one going to €172.

A levy of €517 per policy? What’s that about?

The levy funds a decades-old subsidy scheme called risk equalisation for older and higher risk citizens with health coverage.

And what is risk equalisation?

It is a scheme, introduced in 2003 that means health insurers whose customers have a higher risk profile than the market average, obtain payments from a risk equalisation fund. The fund is part of the Irish “community rating” health insurance system. It means everyone pays the same premium for a given policy, regardless of age or health.

And can companies just keep upping their prices?

Apparently so. Around 2.5 million people have health insurance and most are afraid to relinquish it because then they’d have to rely on our public health system.

But that isn’t too bad is it?

People can be left waiting months and sometimes years, before seeing consultants and that explains the enduring popularity of private health insurance as it allows those who have it avoid many of the public waiting lists.

Could I do without health insurance?

Undoubtedly. More than 2.5 million people don’t have it. Anyone who has a heart attack or stroke, or is involved in a car crash or has to be go to an emergency department suffering from some other serious ailment will most likely enter the public system and will be seen and taken care of at no – or at least at very little – cost to them. Most people who are diagnosed with serious, life-threatening conditions will be treated in the public system fairly expeditiously whether they have health insurance or not.

So what does health insurance do for me?

It gives you access to consultants faster even consultants working out of public hospitals, at least for now. You have access get private and semi-private rooms in public hospitals and private hospital and private emergency departments and clinics. That dramatically reduces waiting times for many procedures – both elective and otherwise.

If a family policy costs €4,000 a year could I save that cash and use it if I needed to pay for medical care?

Some people. Take that route but it is a gamble. It might not cost that much to see a consultant privately on a one-off basis, but ongoing visits or treatment costs add up fast. A colonoscopy in the private system can cost over €1,000 and if it turns up something that needs treatment and you pay for it privately, you are talking many thousands due to the high cost of overnight stays in hospitals, procedures and courses of medication.

I’m young and healthy so will I just wait until I am older to insure myself.

You will pay a premium for that. Anyone taking out insurance for the first time aged 35 and older is charged an extra 2 per cent of their policy for every year they are over 34 and do not have health insurance. The maximum loading is 70 per cent. It applies for 10 years, after which a person reverts to the standard policy price. So if a policy costs €1,000 when you are 34 it will cost €1,020 if you wait until you are 35 and €1,400 if you wait until you are in your mid-50s.

And anyone buying health insurance for the first time or after a break in cover of more than 13 weeks will have to serve waiting periods before having full access to all of their benefits.

So what policy should I take out?

There are around 350 health insurance plans on the market and huge price discrepancies between plans. The HIA website has a decent price and cover comparison tool which should be your starting point if you are new to the market.

And what should I do if I have health insurance and renewal time is approaching?

Those who shop around can make big savings amounting to hundreds of euro each year – and sometimes even more than that. But even so, around 70 per cent of the market have never switched provider, while half of those who have switched having only done so once. Many people believe that it is difficult to switch and while it is certainly harder to change health insurer than it is to change energy provider – or at least there are many more variables to consider – it is not as hard as people might think and there are far fewer risks than many probably believe.

What do you mean by that?

There are strict rules in place that give consumers protection irrespective of their age or their health issues. Someone who has a long-standing policy with Company A will have served all the waiting periods expected of them so can switch to Company B and get all the existing cover they had immediately. To put that another way, people don’t lose the cover they have by moving from one company to another. If the plan on the table from Company B offers enhanced cover, they will most likely have to wait for that to kick in, but whatever they had with their original provider, they keep.

I have a pre-existing condition so does that complicate things?

No. Unlike with other forms of insurance you cannot be penalised financially because of a pre-existing condition or because of your age. The law requires health insurance companies to treat everyone equally.

So what should I do if I want to switch?

Start with the facts. Call your existing provider to see if they have a lower-cost equivalent plan to the one you are currently on. And if you’re happy to take on some excesses or minor reductions in cover, depending on the savings, make sure they know that.

Why start with my current provider?

Because it is simple. They have a complete record of all previous claims you have made and the simplest question to ask is if any new and cheaper plans would have covered all the claims that have been paid out over the last two years and to the same level. If the answer is yes, then your choice is pretty simple. You switch.

But what about the other providers – they won’t have the record of my previous claims?

And that is why it is important that when you are talking to them you are upfront. You will not be penalised – financially or otherwise – for honesty. Detail all the important elements of your existing policy, and outline any underlying conditions and procedures carried out. Have them confirm that any new and cheaper plan will cover everything you have had covered in the past.

Should I do this online?

It is better to do it over the phone. By talking to a company representative and asking the right questions, and insisting on having everything explained to you puts the onus on them to make everything clear. Do not be afraid to ask questions and make sure everything is clear in your mind before making any final decision.