Over 65s still paying significantly more for health insurance

People over the age of 65 are still paying significantly more for their health insurance, according to the latest in-depth report on the sector from the Health Insurance Authority (HIA). 

The industry watchdog has also reported a slowdown in the numbers taking out private health cover.    

The average cost of a health insurance policy is now €1,740 a year, which is up almost 10% compared to last year and an increase of over 20% compared to 2023. However, the price hikes varied significantly by plan and by insurer, ranging from a price reduction of over 7% on some plans with the VHI to price hikes as high as 25.6% on some plans with Laya Healthcare. 

There are also big differences based on age. 

According to the report, those over the age of 65 pay a whopping 44% more on average for their health insurance or over €700 a year. The average cost of a policy is €2,367 a year for the over 65s compared to €1,648 for those under the age of 65 despite the fact that health insurers cannot charge policyholders a higher price based on their age.   

While the discrepancy is pretty startling, some of it can be explained by the type of cover people in this age bracket choose.  

Around two thirds of over 65s have plans that include a high level of orthopaedic cover compared with under a third for those under the age of 65. And plans with higher orthopaedic cover (for things like hip and knee replacements) tend to be more expensive. 

However it also shows that older policyholders aren’t shopping around and looking for the best deals. 

Older people tend to claim more and are understandably reluctant to change insurer as they’re afraid they might lose cover. However 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 many people and is often a reason why people are afraid to switch.

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.

And regardless of your current health or claims history, any new insurer must take you on - by law they cannot restrict you from cover or charge you extra. This is how the Irish system works.

In short, everything you're accustomed to with your current provider will be available with a new provider provided you choose a plan with a similar level of cover. 

A huge level of choice

Consumers are also spoilt for choice when it comes to choosing a plan. Though too much choice can also cause confusion and sometimes be a bad thing...

At the end of 2024, there were 338 active plans on the market. Last year, 27 plans were retired and 15 new ones were introduced (ten of these were from new entrant Level Health).

Despite all the options, or perhaps because of it, 50% of people with health insurance are on just one of 32 plans. Therefore, the choice between plans is highly concentrated even though there are so many in the market.

Slowdown in the numbers taking out cover 

The report also shows that 46% of the population, or 2.52 million people, currently has private health insurance. This is an increase of only 1.3% since 2023, with the growth in the number of people taking out private cover having slowed in recent years.

The HIA says that a lack of affordability is likely to be the main reason for this with the wider cost-of-living crisis coupled with big hikes in the cost of health insurance in recent years impacting on take-up.    

However the expansion of free healthcare in Ireland over the past few years might also have left some people weighing up whether they need private insurance. More free GP care, relaxed thresholds for a medical card, and the removal of the €80 a day public in-patient charge mean more of us may be prepared to take a bet on the public health system.  

Review your health cover 

No matter your age, if you think you’re overpaying on your health insurance then look at switching to a new provider or a different plan. 

The HIA offers a free and comprehensive comparison tool to help consumers compare health insurance policies.   

And at bonkers.ie, we can help too. We've partnered with leading health insurance provider Irish Life Health, to offer policyholders a number of great value plans with a wide range of features and benefits.

With over 300 plans on the market, Ireland’s private healthcare system can seem overly complex. But it doesn’t need to be.

Our service will help you get the right policy for your needs in just a few simple clicks!