Charlie Weston – Irish Independent
Thousands of health insurance customers warned they could end up on more expensive plans as major insurer retires 22 plans
People who do not choose an alternative plan will have new one recommended for them by the company
People who have health insurance with Irish Life have been warned not to fall into a situation where they end up on a more expensive plan.
The warning comes as the health insurer retires 22 schemes.
People whose plan is being retired and do not choose an alternative will have a new one recommended for them by Irish Life, but this plan could be dearer than their current one.
About 6,000 policyholders will be affected by the insurer’s move to streamline its schemes, according to health insurance expert Dermot Goode of Health Insurance Ireland
The plans are being removed on September 1.
Mr Goode said the move was welcome because most of the plans being scrapped were dated and may no longer represent good value for money.
Those affected will receive correspondence and calls from Irish Life Health notifying them of the plan change.
They will be offered similar plans or invited to contact the insurer directly to discuss other alternative options.
Plans being retired include the likes of Net Most 100, Better ILH, Better Active, Teachers Complete, Business Plan Plus and Business Plan Choice.
“If members don’t respond to Irish Life, they will be transferred to their closest equivalent scheme with no break in their cover,” Mr Goode said. “There’s always a risk that the suggested alternative scheme may be more expensive, so we recommend that all members impacted by the change engage with Irish Life Health by phone to discuss alternative options.”
People who use a broker for their Irish Life Health cover have been advised to contact the broker immediately to discuss alternative options.
Mr Goode said that many of the plans being retired have been on the market for some time. This means policyholders may be unaware Irish Life has launched numerous new product options such as the 4D Health range and the Health Guide range.
At the start of this month the insurer launched six new plans called Health Action. The plan retirements will apply only from the next renewal date.
VHI retired a number of dated schemes last year, and Mr Goode said he expected more product retirements soon across the market.
An Irish Life Health spokesperson confirmed the company would retire 22 health insurance plans on September 1.
“These changes are part of our ongoing efforts to simplify our health insurance offering and make them easier to understand,” they said.
The insurer said that in compliance with the Health Insurance (Amendment) Act 2016, customers on retiring plans must be offered an alternative with a similar or higher level of inpatient cover. Customers on retiring plans would be informed of these changes through their renewal invitations and SMS reminders, Irish Life said.
“We encourage customers to contact our dedicated support team with any questions and for advice on their available options. If no action is taken, they will be automatically moved to the new alternative plan,” it said.
Last month, it emerged that VHI is to increase the cost of seven plans, just weeks after other hikes. Price rises are coming almost monthly, prompting a slowdown in the numbers taking out health insurance.
VHI, Laya Healthcare, Irish Life Health and new player Level Health have all increased prices recently.
However, Laya is cutting the premium on one of its corporate plans and launching new schemes, bucking a trend of rises in the cost of all the providers’ plans. Experts said insurers were fearful the relentless price rises would force people to give up their cover, and were now attempting to address the affordability issue.
