3 out of every 5 health insurance members are potentially on the wrong plans and could be over-paying by up to €500 per adult for their cover, according to new research carried out by health insurance consultancy TotalHealthCover.ie.
The study, based on feedback from 1,000 health insurance policy reviews, highlights consumer trends for the year to date within the Irish health insurance sector.
Dermot Goode, health insurance consultant and MD of TotalHealthCover.ie, explained the insights provided by the research.
"Buyer behaviour within the health insurance market continues to improve with increasing numbers of older members in particular reviewing their cover and switching for better value. However, our analysis shows that still too many people do not review their health cover annually and as a result, are either paying too much for health insurance or do not have the cover they need, or often both," he said.
"Our message to policy holders is don’t let fear of change or inertia hold you back. Saving €500 - €1,000 on your health insurance bill could cover your car and home insurance premium, so take steps now to avoid over-paying for your cover," he added.
On the key issue of cost, Mr. Goode said that two concerns continue to prevail.
He said that many older members, aged 60 plus in particular, are still reluctant to change due to factors such as fear of losing benefits and misplaced loyalty, and as a result are remaining on very dated plans.
He added that while there is increased awareness of 'corporate plans', approximately 50% remain unaware that anyone is eligible to take out a corporate plan. He said that due to their target market, these plans tend to provide the best value in terms of price and benefits.
The TotalHealthCover.ie research also revealed some interesting insights into the impact Covid-19 is having on the market.
1 in every 3 people reviewed are now enquiring about the option for private room accommodation on their policy, with Covid-19 prompting concerns around sharing facilities.
The research also reveals that travel cover has been a major concern for customers in 2020 due to the uncertainty surrounding travel guidelines and rules.
There was also concern expressed by members about the inability to access essential treatment for ongoing medical care in many private hospitals for the three months that the HSE effectively leased the private facilities.
Mr. Goode said like everything else, Covid-19 has had an impact on the health insurance market and on people's behaviour.
"It’s too early to tell whether financial strains will have a big impact on people cancelling their cover, though early indicators suggest the numbers of those cancelling will be low. In fact, many people are more focused than ever on their health and are concerned about whether they have adequate protection in place if they were to fall ill," he said.
"We have also seen a marked rise in the number of people returning home to live in Ireland and looking to take out cover... And we have noticed an increase in requests for access to mental health treatment or supports especially amongst younger members. There has also been a marked increase in the numbers using online supports such as digital doctor, GP lines, nurse lines, mental health supports etc," he added.
