Dónal Clancy, CEO of Laya Healthcare. Photo: Tom Burke
Laya Healthcare will raise the cost of health insurance by 6.5pc on average for Irish customers, the latest in a wave of increases in the sector.
The move will mean its 700,000 customers have to pay more if they renew from October 1st.
The price rise is Laya’s second this year and follows two hikes in 2023.
As well as the rise in the cost of plans, the insurer is increasing the excess for some in-patient claims meaning they’ll have to pay more out of pocket for some hospital care.
Rivals VHI Healthcare and Irish Life Healthcare have also pushed multiple prices increases onto customers over the same period. Laya’s rising prices will end any hope that its acquisition last year by French insurance giant Axa in a €650m deal would boost competition in the Irish market to the benefit of customer bills.
Insurers say higher premiums reflect the increased cost and complexity of medical care.
Managing director of Laya Helathcare. Dónal Clancy, said a product review was needed to address a sustained acceleration in demand for services and rising costs.
“While advances in modern healthcare, including new technologies and high-cost drugs are delivering better outcomes for our members, they are significantly driving costs up, particularly in private and hi-tech hospitals. A pricing and product review is needed in order for us to meet the current and future needs of our members,” he said.
He said Laya had seen an 11pc increase in private hospital claims in the first half of the year compared to last year, driven in particular by an increase in cardiology and cancer claims and high-cost drugs.
Laya Healthcare said higher premiums follow a a product review across its schemes and will be effective from October 1st. The review includes an overall pricing adjustment resulting in an average increase of 6.5pc on the gross premium, the company said.
The cost of insuring two adults and two children under the Laya’s Signify Plus low excess plan will increase to €3,512.38.
Benefit changes will also be introduced to hospital excess and shortfalls across a range of plans which will be communicated directly to impacted members ahead of their renewal, Laya said.
A ‘per visit’ excess will be introduced on its QuickCare benefit that gives fast access to treatment for minor injuries and illnesses in approved centres including Laya Health & Wellbeing clinics. The excess amount will depend on customers’ scheme and level of cover, Laya said.
