A MAJOR health insurance provider has announced it’s hiking its prices after entering the Irish market five months ago.
The Level Health recently announced that it was increasing the price of its plans by an average of 6 per cent – this comes into effect starting next month.
This is one of the many latest hits to the rising cost of living, as other providers have raised their prices over the past 18 months.
The health insurer’s arrival was believed to make the market even more competitive for other companies.
However, the price hike reflects the increasing cost of providing health care, which is fueled by two factors – the Government’s health insurance levy increase and the high demand of people accessing healthcare.
They confirmed that this is leading to higher claims across hospitals, specialist care and everyday medical expenses as demand for treatment and the cost of delivering high-quality care rises – which impacts the price of health insurance.
Dermot Goode, the Head of the Healthcare Division with Lockton Insurance Brokers Ireland, said: “This increase was expected, given that the health insurance levies which affect all policies are increasing from April 1.
“Furthermore, given that all other insurers have had at least two increases in the last six to nine months due to spiralling claims costs, it’s no surprise that Level Health is being affected by the same pressures as it begins to pay claims and that it too has had to follow suit with a price increase.
“However, Level Health’s plans are still competitively priced and offer good alternatives for those consumers who’re seeking better value cover.”
Level Health, who insurer Aviva backs, confirmed that the three plans will be changed on April 7, while the fourth plan is set to change later in the month.
The hike will add about €138 to the family cost of Level Health’s popular Plan B 300 scheme, which is based on two adults and two children.
However, the insurer will still be providing the full 10 per cent discount on the plan through April, meaning it’s still competitively priced.
This means that the plan will cost around €1,000 per adult after the hike, compared to €1,100 or higher on many other plans.
Plan D, which is currently priced at €2,536, will be increasing by approximately €400 per adult from next month.
For families who are insured on Level Health’s Plan C, the hike will add another €300 to their annual health insurance bill.
Level Health will continue to offer free health coverage for children under three years of age and extensive maternity benefits with cash-back options.
VHI PRICE HIKE
This comes after VHI increased the yearly price of its healthcare plans by 7 per cent earlier this month.
The firm said the price rise “is necessary to meet the healthcare needs of members as claims volumes have risen by more than 20 per cent in 2023 and inflation has had a significant impact on the cost of delivering healthcare”.
VHI hiked its premiums twice in the past year – by 4.8 per cent in March and then again by seven per cent in October – after reducing prices by three per cent in 2022.
It added: “The rapid return to full activity in hospitals post-Covid combined with the impact of pent-up demand for services deferred during Covid has contributed to the escalation in claims volumes and costs.
“In addition, advances in drugs, procedures and other medical innovations and technologies, supporting enhanced healthcare outcomes, have also impacted on the cost of providing care to members.”
Aaron Keogh, Managing Director, VHI Insurance DAC said: “This unprecedented demand for healthcare from our members has led to a rapid increase in claims volumes and associated costs.
“We are taking the difficult steps required to address this matter. We have implemented a broad range of value and efficiency measures within the business as part of these efforts, however, the scale of the increase in healthcare services accessed by our members means that this price increase is necessary.
“We are conscious of the financial pressures facing many of our members and are committed to delivering value by giving them access to high quality healthcare at the lowest possible prices.”
