Are you paying too much for your health cover?
Even though health insurance costs have spiralled this year, there are still too many consumers overpaying for their cover. This is due to a combination of inertia; fear of switching; and the complexity
of trawling through all the various options.
If you haven’t reviewed your cover in the last two years; or if you have all the family insured on the
same level of cover; or if you’re paying for certain extras such as a private room, then we believe
you’re paying too much for your cover.
To be fair to the health insurers, they are responding to the ‘affordability’ issue in the market by
launching new lower-cost plans . In some cases, they will ‘clone’ existing plans and launch them
under a new name but at a lower cost. If you do your homework properly in advance of your
renewal, you may be able to source equivalent cover at a much lower cost. Whilst switching is
always recommended for better value cover, you may actually be able to achieve these cost savings
from your current insurer, but on a different plan.
The table below shows some alternative plans from Vhi Healthcare;
VHI
Top Quality, but dated plans
Health Plus Extra (B Option)
Health Plus Access (Plan B)
Family Plan Plus Level 1
Parent & Kids Excess
One Plan Access Plus (A Options)
Adult
€2,234.00
€1,819.75
€1,428.00
€1,293.00
€866.25
Lower Cost Alternatives
Health Plus Excess
PMI 30 12
PMI 36 13
PMI 37 13
One Plan 500
Adult
€1,598.50
€1,474.33
€1,122.64
€1,011.19
€689.75
Savings
€635.50
€345.42
€305.36
€281.81
€176.50
The left hand column lists a number of excellent plans that have become quite expensive over the
years due to successive price increases. On the right hand side, you’ll find a number of suggested
alternatives from Vhi Healthcare. Whilst not identical, each alternatives offers the consumer quality
cover at a lower cost. For example, PMI 36 13 is very similar to the Family Plan Plus Level 1 cover
except that it includes a €75 excess per admission to private hospitals. Both plans include quality
day-to-day cover but the PMI 36 13 will save 2 adults €610 per annum. Compared to Health Plus
Extra, the Health Plus Excess scheme includes a €75 excess per private hospital admission and some
other differentials, but will save two adults €1,270 per annum.
Similar savings are available with Laya Healthcare as the table below illustrates;
Laya
Top Quality, but dated plans
Essential Plus No Excess
Health Manager
Family Care
Credit Union Starter
Essential
Lower Cost Alternatives
Adult
€2,345.29
€3,907.22
€2,411.75
€1,445.61
€1,169.08
Health Wise Plus No Excess
Total Health Select
Simply Health Excess
Essential Connect Family
Essential First
Adult
€1,650.08
€1,652.68
€1,297.35
€968.97
€698.50
Savings
€695.21
€2,254.54
€1,114.40
€476.64
€470.58
Whilst the Essential Plus No Excess is an excellent plan, the Health Wise Plus No Excess scheme
offers equivalent cover at a significantly lower cost, e.g. 2 adults renewing on Essential Plus can save
€1,390 for equivalent cover. Likewise, the Simply Health Excess scheme is a quality corporate plan
that offers equivalent cover to the likes of Family Care or Personal Care but at a significantly lower
cost. Two adults switching from Family Care to Simply Health Excess would save €2,228 per annum.
Like all the insurers, Aviva Health have a range of offers to suit all requirements and budgets.
Aviva
Top Quality, but dated plans
Level 2 Complete Health
Nurses & Teachers Choice
Level 2 Hospital with Day to Day
Level 2 Family Health
Level 1 Hospital
Adult
€2,609.70
€1,599.00
€2,189.10
€1,577.00
€899.00
Lower Cost Alternatives
Level 2 Hospital
Business Plan Hospital
Health Plan 16
Level 2 Health Excess
Health Starter
Adult
€1,957.00
€1,163.50
€1,247.90
€1,099.00
€650.00
Savings
€652.70
€435.50
€941.20
€478.00
€249.00
Two adults on Level 2 Complete Health will save over €1,300 by switching to the Level 2 Hospital
plan. Apart from co-payments on certain orthopaedic procedures and cover for the Beacon
Hospital, this lower cost option offers equivalent hospital cover at a much lower premium. For
anyone insured on the Level 2 Hospital scheme with Day-to-Day cover, they can retain their cover
for the routine medical expenses by switching to the lower cost Health Plan 16. Apart from a €75
excess in private hospitals, the latter plan will save a couple over €1,880 per annum.
Many consumers don’t shop around fully when it comes to renewal time. GloHealth are in the Irish
market now for two years and like the other insurers, they have some very attractive options in the
market worth considering;
GloHealth
Top Quality plans
Ultra
Best
Better
Good Plan
Adult
€2,349.00
€1,369.00
€1,039.00
€818.00
Lower Cost Alternatives
Best
Better
Better Saver
Net Most 500
Adult
€1,369.00
€1,039.00
€860.00
€660.00
If a private room is not important to you and you’re open to paying a co-payment for certain
orthopaedic procedures, then you should consider dropping from Ultra to the Best plan with
GloHealth and save just under €2,000 for 2 adults. If you don’t mind taking on a small excess in
private hospitals, then you may be interested in the Better Plan at €1,039 per adult instead of the
Best Plan. Bear in mind, GloHealth are the only insurer to offer free cover for children under 3 on
their mid-range plans or higher and most of their plans include free personalised packages such as
Savings
€980.00
€330.00
€179.00
€158.00
travel insurance cover. Their new Net More and Net Most plans are ideal for those happy to take on
a higher private hospital excess in return for a lower premium.
The above are just samples of what’s now available in the market. With nearly 300 plans across four
health insurers, there is something to suit all requirements and budgets. What the tables show is
that complacency and inertia could cost you heavily when it comes to health insurance.
Final words of wisdom;
- Don’t renew without shopping around
- If a lower cost option is suggested, ensure you understand what exactly you’re losing
- If you’re confused, seek advice. Don’t miss out on valuable cost savings due to benefit uncertainty
- If you’re in good health, take on an excess for private hospitals to reduce your costs further
- Think of it like car cover – shop around for the best deal; get all the facts; if you’re happy – change
cover or switch insurer!!
- Review your cover each year well before your renewal date to ensure you’re tracking the best deals
Dermot Goode