More price rises are predicted, which could see the average cost of a policy shooting up by 15pc this year – and once people start to ditch their plans, the numbers leaving could become an “exodus”, broker Dermot Goode of HealthInsurance.ie said.
The strain on private healthcare policyholders has continued, with both Irish Life Health and Level Health announcing new price rises from April.
Irish Life Health said it will hike costs by an average of 5.9pc starting from the beginning of April.
The increase comes just weeks after it said it was increasing its prices by an average of 5pc, with that hike taking effect from the start of last month.
Families will be hit with higher costs of up to €330 when they renew due to the latest rise.
New player Level Health, which is backed by Aviva, said the cost of its advanced plans will rise by €48 from April 3. These are called Plans B, C and D.
Mr Goode said the price rises look set to continue through the year.
“There is a real risk now that many members, especially those on the lower-level plans, could be priced out of the market,” he said.
There have been a succession of health insurance price rises from all players, including VHI and Laya Healthcare, in the past few months.
Laya Healthcare has also cut benefits on some plans.
It will be predominately younger, healthier people who will leave
Mr Goode said that when the various increases from all the insurers that are announced every few months are combined, some plans are going up by 27pc to 30pc over a year.
About 2.5 million people have private health insurance in Ireland, but Mr Goode said thousands of people were dropping their cover because they can no longer afford the premiums.
He said those opting out were predominantly young, healthy people and young families.
The price hikes were also causing younger people who were considering taking out health cover to defer doing so.
Some families were also taking their children off cover to save money, he said.
“We are going to see a contraction in the market. It will become an exodus when it gets going and it will be predominately younger, healthier people who will leave,” Mr Goode said.
“They are being priced out of the market.”
Head of health insurance at broker Cornmarket, Dermot Wells, said the trend of price rises is set to continue, while the government levy on health plans was exacerbating the costs issue.
“With average 2026 premium increases projected to exceed 15pc, the flat levy model continues to deter younger joiners and poses long?term risks to market stability,” he said.
Irish Life Health is putting up premiums by an average of 5.9pc from April. This will cost between €180 and €330 extra a year for a family of two adults and two children.
It blamed what it said was medical inflation and the levy charge announced by the Government.
Level Health said it would increase the cost of its advance plans by €48, passing on the government levy.
It said the levy was a cost increase imposed by the Government, which it said was unnecessary.
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