8 health insurance mistakes Irish people need to stop making
Health insurance in Ireland is one of those things that most of us know we should be paying closer attention to — and yet, renewal time rolls around and we click “renew” without a second thought. With premiums rising again recently and over 300 plans now available on the market, it’s genuinely overwhelming. But a few smart moves could save you a significant amount of money, and some mistakes could cost you far more than you’d expect.
Dermot Wells, head of health insurance at Cornmarket — Ireland’s largest health insurance broker — has put together the key pitfalls people keep falling into. The one about age loadings alone is worth reading if you’re under 35 and don’t yet have cover.
The mistakes that are costing you money
Letting your policy auto-renew is the big one. It feels easy, it feels safe, but it’s almost certainly not serving you well. Wells is direct about it: “The best health insurance plan is not necessarily the cheapest, or the most expensive. It is one that gives you the cover you actually need at the most competitive price. New plans launch, prices rise and benefits change constantly.” Shopping around annually is the single most effective thing you can do.
Closely related to that is staying on an outdated plan. A policy that was brilliant value five years ago probably isn’t the most competitive option now. Insurers regularly introduce updated plans, and loyalty doesn’t tend to get rewarded in this market.
It’s also worth looking at whether you’re paying for benefits you don’t actually need. Cover varies considerably between plans, and one of the more practical tips from Cornmarket is to think about which hospitals you’d realistically use. Limiting your cover to your preferred region can bring your premium down substantially.
Hospital excesses are another area worth revisiting. An excess is the amount you pay yourself when you make a claim. Many plans carry an initial excess of €150 — but if you were to increase that to €300, you could reduce your premium by anywhere between 15% and 20% in some cases, while still keeping solid hospital cover in place.
The one thing under-35s really need to know
If you take out health insurance in Ireland for the first time at 35 or older, you will be subject to a rule known as Lifetime Community Rating. This means that you pay a loading of 2% on your premium for every year you delayed taking out cover past the age of 34. By purchasing your first policy before turning 35, you avoid all such penalties.
It’s one of those things that’s easy to put off when you’re young and healthy and money is tight, but the long-term cost of waiting adds up fast.
Wells also flags the risk of waiting until you actually need cover to take it out. Accidents and injuries are covered from day one, but for new illnesses there’s typically a 26-week waiting period before full benefits apply. And if you develop a medical condition before joining, claims related to that pre-existing condition may not be covered for up to five years.
A few other things worth checking
If you have family on your policy, it’s worth asking whether everyone actually needs to be on the same plan. Not every family member is at the same stage of life or has the same healthcare needs, and splitting plans within a family policy can sometimes result in meaningful savings without cutting back on care.
Finally, don’t overlook corporate plans. These are designed for large company schemes, but any individual can access them. They often offer better value and more comprehensive cover including private and hi-tech hospitals. Ask your insurer or an independent broker to walk you through the options — you might be surprised.
“If your policy is due for renewal over the coming months, now is the time to compare and contrast,” says Wells. “It pays to ask the right questions, speak to more than one insurer or seek independent advice to ensure a thorough annual review.”
For more information and to compare plans, visit cornmarket.ie.
