“January is the busiest time for health insurance, with 500,000 customers due to renew their cover,” says Dermot Goode, a health insurance expert with healthinsuranceireland.ie . “By the end of March, nearly half the market or 1.25 million members will have renewed their policies.”
He says “all insurers have increased their rates, impacting nearly all plans”, with some increases amounting to 27 per cent.
He warns that people could find themselves paying far more for less cover if they don’t act quickly.
The first step is “to engage by phone with your existing insurer.” Goode advises. “Challenge them to check their full suite of plans to find you an alternative option with similar benefits at a lower cost. Don’t be afraid to disclose your exact budget, for you, your family, or even your business.”
Whatever alternatives they suggest should be explained clearly and compared with existing cover to get a sense of what benefits are being reduced or changed on the new scheme.
“Don’t be afraid to take on a small excess for each private hospital stay and also, consider splitting your cover,” Goode says. “This means that each family member can hold different plans to suit their needs whilst all remaining on the one policy.”
He suggests that if people are unsatisfied with the alternatives offered then they simply repeat this process with the other health insurers.
“Once again, tell them the name of your current plan and your target budget for the coming year and ask them to check all of their plans to find you something similar that matches that budget,” he says.
“Even if your intention is to auto-renew on the same level of cover, we recommend that you still contact your existing insurer to confirm that there have been no changes to your benefits over the past year. Many consumers get caught out as certain benefits have been changed and if they don’t read the small print, they will end up paying higher premium for less cover.”
People with young children should, Goode says, check for any discounts or specific deals which are usually available at this time of year. “If you don’t phone and engage with the insurance companies, often you will not learn about these deals and you will end up overpaying unnecessarily,” he warns.
He stresses that people should not be put off by the number of plans and confusing terminology and if they are struggling they should seek out a trusted friend or family member join them on the call to make sure everything is covered in full.
Ten steps to save money 1. Take on a small excess per claim in private hospitals
Typically, this might be €50-€150 per claim but it could reduce your costs by 10 per cent or more. In the majority of cases, these excesses are per claim and not per night.
2. Split your cover
For example, older family members have different needs compared to young children. Therefore, you should select appropriate cover to suit each person insured on the policy.
3. Check for young adult rates
If you are paying the full adult rate for your 18-20-year-old dependents, you need to take action immediately as you’re not getting a “young adult” rate. For example, an 18 year old on the Laya Flex 250 Explore scheme will be charged €2,217, which is the full adult rate. Consider moving them to the Laya Inspire Plus corporate scheme at €888 for better overall cover and huge savings.
4. Do you all need a private room?
If you’re under pressure to reduce costs, consider opting for semi-private cover in private hospitals. Your hospital access will be the same and you will always get the semi-private room. This tactic could also reduce your costs by about 10 per cent, depending on the plan.
5. Check out the corporate plan options
These plans are designed specifically for company-paid employer schemes, but they are available to all consumers. They are well-priced with excellent cardiac and outpatient cover included. VHI has nearly 70 “PMI” corporate plans; Laya has a range of “Inspire” schemes; Irish Life Health (ILH) has launched a new range of “Health Action” schemes; and the new insurer, Level Health has launched two “Plan Pro” corporate schemes.
6. Avoid the most dated schemes
If you’re on the same plan for five years or more, you could be overpaying by thousands of euro. The following plans include good cover but are very expensive and any members on these schemes should review their cover before their next renewal:
VHI: Advanced Care Extra Day to Day, Company Plan Extra Level 2, Premium Care Laya: Any schemes starting with “Empower” or “Flex 125″. Popular schemes such as Complete Simplicity, Momentum or Company Care Plus should also be reviewed ILH: Any schemes starting with “Optimise”, “Business Plan” or “Level 2 Hospital”. Even popular schemes such as 4D Health 5 or Best Ultimate 2 need to be reviewed.7. Don’t be afraid to shop around
You have nothing to lose by making that one phone call to your existing insurer. The worst-case scenario is that you may have to remain on the same plan for another year. Health insurers are not allowed to reward loyalty, ie everyone is treated the same, irrespective of whether you’ve been with them five years or 15 years. If in doubt, seek expert advice from a qualified adviser –and, ideally, they should be checking all insurers for you across the market.
8. Look for the discounted family deals
Laya is now offering free cover for the second and subsequent child under 18 across a number of plans. Level Health offers free cover for all children under three and a 50 per cent discount for those aged three-17 across some of their plans. VHI is offering a 25 per cent discount on its Enhanced Care schemes for children under 18. ILH is also offering good pricing on its Nurture Plus scheme for all children under 18. Don’t forget the point regarding splitting cover and, with the exception of VHI, insurers will allow you to access these deals midyear even if they weren’t available at your last renewal.
9. Offload the young adult dependents
Although not easy, it may be time to have the conversation with your 25–34 year olds about them taking out their own cover, especially if they’re working. Have them check if there is company-paid health cover with their employer or even a group scheme with plan discounts they can avail of. This could free up funds for the parents to upgrade their own cover as they get older.
10. Consider other healthcare plans
If you can’t afford private health insurance, or maybe you’re happy to rely on the public health system, you could consider other plans, such as dental cover from DeCare Dental or VHI, which offer a wide range of plans to suit all budgets. These plans are extremely well priced, with minimum waiting periods. Health cash plans, such as those from HSF Health Plan, are designed to cover everyday outpatient costs such as GP, physiotherapy, consultant fees etc; there are multiple plans available for both individuals and families. It’s important to note that these plans are not substitutes for full private medical insurance.