Top 5 Health Insurance Mistakes Costing Irish Households from €400 to €1000

Over the past 12 months, the health insurance experts at totalhealthcover.ie have been tracking the typical mistakes made by Irish households when it comes to private health insurance the knock-on monetary costs of these missteps to Irish consumers.

The health insurance experts say individuals could be paying €400 – €500 over the odds for cover, while families could be looking at overpayments in excess of €1,000.

According to Dermot Goode, Ireland’s leading health insurance consultant, and Managing Director of TotalHealthCover.ie,

“Too many people auto-renew their cover which means they have no chance of securing better deals at a lower cost. The fact is, this behaviour or inertia could be costing them hundreds if not thousands on their cover. Of those who do look to shop around, many leave it too late and only seek advice after their renewal date has passed and are then shocked to find they’re locked into the same ‘dated’ contract for another 12 months. For policyholders on the same plan for 3 years or more and/or those who are afraid to switch insurer, the average savings are in the region of €500 per adult or more depending on the plan”.

TotalHealthCover.ie compiled research based on a sample of approx. 1,500 consumers, which also includes direct consumer feedback.

The research points to the Top 5 Mistakes made by Irish consumers when it comes to health insurance:

Not Taking an Excess

Mr Goode describes this as,

“The single most effective tactic for reducing your premium”.

He continued,

“But many consumers are still reluctant to make this change because they are not quite sure what it means. By taking on a small excess, which applies per stay in a private hospital only, consumers can save hundreds of Euro”.

TotalHealthCover.ie report that many consumers mistakenly believe that the excess is per night which, on most plans, is not the case. The excesses can range from €50 – €150 per claim. Substantial savings include;
– VHI Health Plus Access vs Health Plus Excess to save approx. €200 per adult
– Irish Life Health Level 2 Hospital vs 4D Health 5 to save approx. €1,090 per adult
– Laya Essential Plus (no excess) vs Complete Simplicity to save approx. €1,840 per adult

2. Using Comparison Sites instead of Getting Advice

TotalHealthCover.ie advise caution to consumers relying on any comparison site when trying to select the most suitable plan to best match their requirements.

Mr Goode continued,

“We deal with consumers every week who are on plans that are completely inappropriate for their needs. To ensure your plan fits your exact needs (not just your wants), you must engage a qualified advisor who is authorised by the Central Bank of Ireland to give advice on health insurance products. If you end up on the wrong plan after using one of these comparison sites, you have no comeback whatsoever, i.e. you may have to wait until your next renewal date to get back onto the correct plan and could face further waiting periods and shortfalls on your claim’s payments in the meantime”.

3. Fear of Switching Health Insurers

TotalHealthCover.ie say that this is still one of the biggest stumbling blocks for consumers and is more prevalent amongst older members.

Mr Goode advised,

“People don’t realise that they get full credit for previous membership which means no re-serving of waiting periods or age loadings to worry about. If they switch from renewal, there will be no break in cover whatsoever. If they switch to an equivalent plan, they will be on cover immediately for any existing medical conditions”.

TotalHealthCover.ie advise those on dated plans such as VHI Health Plus Choice (€2,721), Irish life Health Optimise Silver (€3,828) or Laya Health Manager (€4,579), that being open to switching provider could generate savings of €400 to over €2,500 per adult depending on the plan selected.

4. Not joining Corporate Plans

According to Mr Goode,

“Many consumers still believe they’re not entitled to join these ‘corporate’ plans. These schemes are open to every consumer irrespective of the plan name or target market. They tend to offer the best overall benefits including guaranteed refunds on out-patient expenses with no excess to pay first. Many consumers are still shocked to realise that they can increase their benefits and still save money by switching to these schemes. For those on dated consumer plans who don’t mind taking on a small excess, the savings range from €450 – €650 by switching to the latest corporate schemes (savings vary depending on the plan held)”.

5. Not claiming Young Adult Rates (YAR)

TotalHealthCover.ie are highlighting that discounted young adult rates (YAR) are available on many plans for those aged 18-25.

Mr Goode continued,

“Regardless of whether you’re working or still in college, young adults aged 18-25 are entitled to these discounts but only if they’re on the correct plan. Many parents are still covering the cost of their dependents but as they’re insured on dated plans, they’re actually paying the full adult cost instead of the discounted young adult rate. For example, the adult cost on the Laya Flex 125 Explore scheme is €1,654. As there is no young adult rate on this plan, they will also pay €1,654 for their 18-year-old dependent. However, by moving this dependent to the Laya Simply Connect Plus corporate plan, the cost will reduce to €625 for better overall cover as this plan includes young adult rates. This simple adjustment will save this member over €1,030 for this young adult dependent alone!”.

TotalHealthCover.ie contend that there is a myriad of other health insurance myths and mistakes that are costing consumers hundreds of euro. They advise that the best way to avoid these costly errors is to review cover annually and to engage the services of a qualified advisor to guide you through the process.