Average health insurance premium now close to €2,000

With energy, housing, and food costs already straining household budgets, consumers now face yet another financial pressure: the soaring cost of health insurance.

What was once seen as a standard outgoing is now starting to feel like a luxury for many. But while prices continue to rise sharply, there are still ways to that you can cut the cost of your health insurance without compromising on cover or having to cancel your policy altogether.

How much has the average health insurance premium increased?

According to the Health Insurance Authority (HIA), the average annual premium is now €1,929 — a major jump in just a few years.

In 2023, the average cost across all age groups was €1,448. This means the cost has risen by around €500 or over 30% in just a few years. 

What's more, this figure only covers prices up to the end of March. Several insurers have implemented further increases since then, meaning the true average could already be over the €2,000 mark.

Why are health insurance costs increasing?

Insurers have blamed an increase in demand for healthcare, an increase in the cost of new drugs, and rising general medical inflation for all the recent price hikes. 

To bypass crowded A&E rooms, policyholders are also increasingly choosing to go the private route for minor injuries by using insurers' Urgent Care or Swiftcare clinics — increasing the number and value of claims for insurers.

Research from the HIA in 2023 found that the number of claims rose by 15% compared to the previous year and reached a record €2.9 billion in value.  

What can you do to reduce your premium?

Shop around

There are still potential savings to be made by shopping around come renewal time. And in some cases you could even end up with better cover too. So don’t just accept the price hike when your renewal letter comes in the post. 

At the moment, for the average semi-private plan there are many policies offering cover well below the average price of €1,929.  

And if you switch insurer, you won’t have to serve any waiting periods again — as long as you switch within 13 weeks. This is not known by some people and is a barrier to switching. And if you switch insurers while you are serving a new customer waiting period, the amount of time served with your first insurer will be taken into account with your new insurer.

Review the excess on your policy

An excess is the amount you volunteer to pay yourself in the event of a claim. Anything above this will be paid by your insurer.

The higher your excess, the lower your premium will be. So increasing the excess can be a way to reduce your premium. 

Be aware that some plans have an excess per claim, while others have an excess per night in hospital. So read the fine print carefully.

Adjust your level of cover

Your health needs change over time — and so should your insurance. Don’t pay for benefits you no longer need.

If you're someone who has high blood pressure or if you have a particular cardiac condition, focus on what benefits are provided for cardiac treatment in the different hospitals.

And check what hospitals are covered by your policy. There may be no point in paying for cover in a fancy hospital in Cork or Dublin if you live in Donegal, so think about what is of value to you.

You can also consider temporarily reducing the level of benefits on your policy. Some of the top-tier plans will cover a fully private room in public, private and hi-tech hospitals. But ask yourself if that’s something you really need, or would even use.

You could downgrade to a private room in public hospitals and a semi-private room in other hospitals. Or you could choose a plan that just covers a semi-private room in a public hospital only. 

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