How to get through the 'confusing maze' of health insurance plans and save money
The start of a New Year can prompt the desire to plan ahead. For many young people and young families, this can include researching health insurance plans for the first time.
Due to the sheer number of plans and different companies, the process can be overwhelming, including for those looking to renew their policy or find a better deal.
Speaking to BreakingNews.ie, health insurance expert with Health Insurance Ireland, Dermot Goode, has advice for those looking to make it through the other side of the "confusing maze" of health insurance plans.
"The sheer number of plans, each with different benefits, limits, excesses, and co-payments, can make it feel like a confusing maze, particularly for younger people or those new to private cover," he said.
"From different hospital networks, accommodation options, outpatient cover, dental add-ons, and excess levels, it is easy to lose sight of what really matters."
Here is Goode's advice for those thinking about taking out health insurance:
Focus on the basics
Goode said his main advice is to simplify the process and focus on the basics.
"Start with your budget, i.e. how much can you afford to spend on healthcare for the coming year. This eliminates any unnecessary upselling by the insurers," he said.
"The next step is to consider what you actually need, such as the hospitals, consultants, or treatments that matter most to you and your family.
"Decide which benefits you can do without, such as private accommodation or cover for rarely used services. Also consider what level of excess you can afford to pay for private hospital admissions, e.g. €75 - €150 per claim is the norm but there are plans with higher excesses as well.
"Remember, the higher the excess payable, the lower the premium you will pay. Compare plans mainly on core cover and price, rather than getting lost in every optional add-on."
For consumers still insured on dated plans, Goode said they will be hardest hit by the rate hikes introduced in the last six-12 months.
"Unfortunately, this includes mainly older members who don't want any excesses on their policy and who need full cover for major orthopedic and ophthalmic procedures.
"For many, the cost will now be unaffordable, and they will have no option but to shop around for better deals. Also, the insurers are retiring some of their dated schemes, which means that these members will also have to source alternative cover as their existing plan may no longer be available."
Review your policy
Goode said it's important to review your policy to ensure you are not overpaying for your cover.
For those who meet the following criteria, Goode said a full cover review is "probably long overdue":
If you are on the same plan for five years or more, or are paying more than €2,500 per adult;
If you do not have a small excess on the policy, or if the whole family are on the same plan;
If you have not considered an up-to-date corporate scheme (available to all consumers).
Goode said, for anyone who meets any of the above criteria, a full review of the health insurance cover is "essential and could save them hundreds or even thousands of euros".
"In many cases, they may be able to source better value cover from the same health insurer.
"For those who are nervous about making any changes to their cover, they should seek independent expert advice or, at the very least, have a trusted friend or family member with them when they engage with their health insurer."
Say no to auto-renewal
Goode said it is important to not let health insurance policies auto-renew to ensure you are not paying much more than you need to for what is essentially same cover.
"Even with the rising costs, with some plans increasing by up to 25 per cent over the last year, families can maximise savings by reviewing their cover and being proactive," he said.
"Do not let policies auto-renew, as a quick call to your insurer can reveal cheaper options with the same essential cover.
"Consider small adjustments such as taking a modest excess, splitting cover among family members, or using a network hospital plan. Look at corporate plans, which are available to all consumers and can reduce premiums. The key is to engage, simplify, and focus on what really matters.
Strip away the jargon, ignore the bells and whistles, and make sure your cover protects the essentials.
"This is how families can avoid overpaying while still getting the protection they need. At the very least, all consumers should at least make one phone call to their existing health insurer.
"Challenge them to check all their plans to find something similar to the existing cover, and don’t be afraid to disclose your budget to them.
"You should also outline your exact requirements in terms of preferred hospitals, consultants, and even pending treatments, as they must ensure that any recommendation addresses all of these concerns. Too often, consumers are shocked to find there is a lower cost option available that they weren't aware of, simply because they never engaged properly."
Alternative cover
For those with no health insurance, Goode said there are other types of health cover they can consider.
"For example, HSF Health Plan have a range of medical cash plans which cover everyday out-patient expenses and these plans are extremely well priced.
"There are also dental plans available from the likes of VHI and DeCare Dental for those worried about the rising cost of dental treatments, e.g. DeCare have a range of ‘Healthy Smiles’ plans to suit all budgets.
"These dental plans are very competitively priced and have minimum waiting periods to serve."
In conclusion, Goode said the most important advice for all health insurance consumers is to never let your cover auto-renew.
"This is where your cover rolls over, which means you could end up paying significantly more for potentially less cover as lots of benefits are changing."
