The Irish health insurance market continued to recover in 2016 with an increase in the total number of lives insured to 2.15 million at December 2016, an increase of 30,000 on December 2015.
This is according to the Health Insurance Authority which has published its Annual Report and Accounts for 2016.
The report found that the private health insurance market is the largest non-life market with total premiums of €2.53 billion in 2016. Average claims paid per insured person increased by 1% while the average amount paid for in-patient cover remained broadly unchanged at €1,177 per insured person (€1,173 in 2015).
These changes were probably higher because of the change in the rules for charging private patients in public hospitals in January 2014. However, the rate of increase is still lower than the 12.6% average annual increase between 2008 and 2012. During 2014 and 2015, both overall consumer price inflation and health sector inflation were close to zero.
The market has now seen two straight years of increases in the number of insured persons, or a total increase of 127,000 since the market low in December 2014 of 2.025 million insured. The increase has been proportionally greater among younger age groups with a net increase (over the last two years) of 85,000 in the number insured in the below 50 age category and a 62,000 net increase in the above 50 age category.
Almost 46% of the population, or 2.15 million people, now have private health insurance. The market peaked in December 2008 with 2.3 million insured.
The report shows that the percentage of the insured population aged over 60 has increased by 0.8% per annum since 2009 and was 21.3% at the end of 2016. During the recession there was a notable decrease in the numbers insured in the young adult cohorts, however this trend has reversed in the last two years due to growth in employment and an associated reduction in net emigration. The introduction of both young adult discounts and Lifetime Community Rating in 2015 have also had an effect.
VHI Healthcare had the largest overall share with 52% of the PHI market but 81% of the insured population over 80 years of age. Irish Life Health (including GloHealth) had 21% of the overall market and Laya Healthcare 27%.
Commenting on the research, Health Insurance Authority CEO, Don Gallagher said, "The market can be difficult for consumers to navigate due to the large number of products and the rate at which products or their prices are updated. There is also some segmentation in the market through a combination of targeted product features and differences in pricing for different products which has resulted in older insured persons, on average, paying more for health insurance."
The Report and Accounts have been submitted to the Minister for Health, Mr. Simon Harris TD, and have been laid before the Houses of the Oireachtas
Source: www.businessworld.ie
