Many over 65 year olds may not be on the most cost effective health insurance plan for their needs, the Health Insurance Authority (HIA) has claimed, as new data showed they paid 42% more on average for cover last year than younger cohorts.
This is despite the average premium for those of pension age and older falling by 2.4% in 2022, the statistics show.
The HIA's 2022 Report on the Health Insurance Market found the average premium in 2022 was €1488, a decrease of 1.2% on a year earlier.
Premiums for those under the age of 65 fell by an average of 0.9%.
The HIA said the reductions could be due to new entrants or existing policy holders choosing lower cost plans.
It may also be a result of insurers passing on the reduction in the 2022 stamp duty via lower prices.
Despite the overall drop in health insurance premiums last year, this year the cost of cover is rising, with Irish Life Health announcing two price increases and VHI and Laya also pushing up prices.
"While average premiums declined in 2022, all three insurers have increased their prices in 2023," said HIA CEO, Laura Brien.
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"We would always encourage health insurance customers to review their policies before they renew, and to use the free comparison tool on the HIA website to compare plans to see if they can save any money on their premium."
Across the population, 47% of people currently hold health cover, up 3.5% on 2021.
But the HIA data also shows the number of children insured continued to decrease last year and now stands at 22.1% of the total.
VHI continues to have the largest slice of the market with 48.4%.
The rate of decline of its share has, however, slowed the HIA compared to 15 years ago when it enjoyed a 70% chunk.
At the beginning of 2022, there were 327 plans available to consumers across the various providers.
But half of customers with cover use one of 27 plans, and 32% used just one of five on offer.
"This shows that although there are almost 330 plans in the market, the choice between plans is concentrated," the HIA said.
The CEO of the Health Insurance Authority, Laura Brien, also told RTÉ's News at One that higher employment numbers in power will feed through into higher levels of health insurance.
"We've also got an ageing population, those older cohorts also tend to take up health insurance at a higher rate. Our survey does show that one of the key drivers of people taking out health insurance is the fact that they are concerned about getting access to the public services," she said.
"They also tend to view health insurance as a necessity more than a luxury. So it's something that people are willing to hang on to, probably for longer than we might think particularly if they're sort of squeezed due to inflation in other areas," she added.
If people do not take out health insurance for the first time before they are 35, they are subject to a loading of 2% per year on the price of your health insurance.
About 4% of people in the market are actually paying this additional loading, she said.
Ms Brien also said that all three providers are actively competing for consumers and they are actively bringing out new plans.
She said today's survey results show that people are nervous about switching.
"One message I'd have for people today is you know you can switch with confidence either to another plan with your own provider or to or to a different provider," she stated.
"People say to us that they've concerned about waiting periods and that's one reason why they might not switch particularly if they have a pre-existing condition.
"But if you've already had health insurance, you do not need to start again with a waiting period if you have a pre-existing condition. You can switch to a new plan and keep your coverage," she added.
