Half of families overpay between hundreds to thousands of euro for health insurance
An analysis of more than 500 review cases of health insurance policy holders in Ireland found that households are overpaying on their health insurance by an average of 19%. This equates to over €700, with some overpaying by as much as €1,200 on like-for-like family plans.
The study, which involved a series of one-to-one reviews and group information sessions, also found that older people fare worse primarily because of a lack of knowledge of entitlements and inadequate communications from insurers.
According to the research, conducted by totalhealthcover.ie, older people pay even higher premiums because they tend to be insured on the most dated plans.
Recent research by the Health Insurance Authority found that over-60s are overpaying by around 30% but the totalhealthcover.ie study revealed that, in some cases, they are paying double what they should be and their savings could be anything from €500 to €1,000 per adult, depending on the plan held.
Downgrading cover is still the leading trend among Irish people. The study found that 80% to 90% of customers are now prepared to take on a small excess in private hospitals simply to keep their premium affordable.
Health insurance expert and totalhealthcover.ie founder Dermot Goode said that the research showed that people need to shop around when taking out health insurance.
“Health insurance rates are on the increase again and more price hikes are likely,” he said. “We ran some figures to give people an indication of the huge price variation that exists across the industry for plans with similar or equivalent cover — often with the same insurers.
“Consumers who are open to switching will save the most. From speaking with people, the primary factors for not switching include complacency, inertia, loyalty, and fear.”
Mr Goode said that, whether the policyholder is at the younger or older end of the spectrum, one common issue is that people remain unaware that they can avail of insurers’ often cheaper “corporate plans”.
The research also pointed out the difficulties returning emigrants face when taking out insurance cover when they come home.
“Even if they have the most expensive international cover, Irish insurers are under no obligation to waive any waiting periods, which means they have no cover for any pre-existing conditions for up to five years,” said Mr Goode.
Those aged 35 or over who left the country to travel or study since May 1, 2015 also face difficulties. As well as waiting periods to serve, these people are now faced with the age loading due to the new Lifetime Community Rating legislation.
“We’ve been left with a situation whereby many parents now have to keep paying private cover for their adult dependents whilst they’re away even though the health insurance contract states you must be living here for at least 180 days to qualify for benefit,” said Mr Goode.
