Irish Life Health has today announced an average increase of 5% on its health insurance premiums.
The increase will take effect from July 1 and follows an average 4.5% price increase announced last November.
Irish Life Health said it is raising prices due to a "very significant" increase in the volume and size of claims.
It said this comes on the back of a substantial increase in demand for healthcare services, particularly in private and high-tech hospitals.
It said there has been a considerable rise in activity across all public and private health services since the Covid-19 pandemic, with private and hi-tech hospitals returning to full service and many procedures that had been deferred during the pandemic now taking place.
The level of claims in 2022 from private and hi-tech hospitals is the highest seen since the inception of Irish Life Health in 2016, it noted.
The general inflationary environment seen in the economy is also a factor in the price changes.
"Substantial medical and general inflation has materialised over the last three years in the form of higher hospital costs and consultant fees, and there are also increased requirements for high-cost pharmaceuticals to deliver the best health outcomes for patients," the company said.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
Irish Life Health managing director Ger Davis said the company was acutely aware of the impact increasing premiums will have on its customers.
"We recognise that these changes will be difficult for customers who have recently experienced significant price increases across many areas. We have therefore ensured the increases are as low as possible in the context of the increased cost of providing the healthcare that our customers are accessing," Mr Davis said.
"As pent-up demand for medical services makes its way through a more normalised health system, the volume of claims is higher than previously anticipated," he added.
Irish Life said the price increases will vary across its various plans.
Its recently launched entry-level plan First Cover will see a 1% price increase, while its Healthguide range will see a 2.5% increase.
The new prices will apply for new customers from July 1 this year and existing customers whose renewals fall due from July 1.
Vhi and Laya also increased their rates earlier this year. Vhi increased by average 4.8% on March 1 and Laya by average 4.4% on April 1.
Dermot Goode, Total Health Cover, said it can only be assumed that both Vhi and Laya will move on their rates again later in the year assuming they are affected by the same cost drivers claims as Irish Life Health.
He said that after a period of relative price stability for health insurance, we are returning to the days of potentially double-digit price hikes which will be unaffordable for many households.
"These hikes could force people to reconsider the need for private cover (especially younger members). It could also force those who are using their cover to take on more risk in the form of higher policy excesses or reduced overall cover in an effort to keep the cost affordable," Mr Goode said.
"For hard pressed consumers who will struggle to absorb these latest increases, there is no real alternative to private cover as the public system continues to struggle with waiting lists," he added.
"Our advice to all consumers is not to 'auto-renew' their policy - don't accept these price hikes without completing a full review of your options," Mr Goode stressed.
"There are over 330 plans to choose from and those who shop around properly can usually manage to keep their costs affordable whilst still maintaining quality cover," he added.
