Dónal Clancy, Managing Director of Laya Healthcare. Photo: Tom Burke
Laya Healthcare is set to increase health insurance costs for customers by an average of 6.5%, the latest in a series of increases in the sector.
The measure means that the 700,000 customers in Ireland will have to pay more when they renew their subscription from October 1.
The price hike is Laya's second this year and follows two increases last year.
In addition to the increase in insurance costs, the insurer is also raising the deductible for certain hospitalization claims. This means that patients will have to pay more out of pocket for certain hospital care.
Competitors VHI Healthcare and Irish Life Healthcare have also implemented several price increases in the same period.
Laya's rising prices have dashed hopes that its €650 million takeover last year by French insurance giant Axa would boost competition in the Irish market and boost customer bills.
Insurers say higher premiums reflect the increased cost and complexity of medical care.
According to Dónal Clancy, CEO of Laya Healthcare, a product review was necessary to address the continued increase in demand for services and rising costs.
“While advances in modern healthcare, including new technologies and expensive medicines, are delivering better outcomes for our members, they are driving up costs significantly, particularly in private and high-tech hospitals,” he said. “A price and product review is needed to meet the current and future needs of our members.”
He added that Laya has seen an 11 percent increase in claims for private hospitals in the first half of the year compared to last year, mainly due to an increase in cardiology and cancer claims and high-cost medicines.
The higher premiums will take effect on October 1. This means that the cost of insuring two adults and two children under Laya's Signify Plus low deductible plan will increase to €3,512.38.
Laya said there will also be changes to hospital co-pays and deficits across various plans. These changes will be communicated directly to affected members prior to the renewal of the plans.
A “per visit” deductible is being introduced on the QuickCare benefit, which provides quick access to treatment for minor injuries and illnesses at approved centres, including Laya Health & Wellbeing clinics. The deductible will depend on the customer’s schedule and level of cover, Laya said.