Most young people don’t bother with health insurance. Vigo Health believes it can address this gap in the market, writes John Kinsella
“We’re focused on the under-35s who don’t have health insurance,” says Ruth Bailey, with the air of a chief executive who is acutely aware of the market her new health proposition is targeting.
Vigo Health, launched in May 2021, is a health plan that covers everyday costs for people who do not have private health insurance.
Vigo Health is taking on HSF, the market leader in this segment, and is connected with Irish Life, where both Bailey and Vigo principal Stephen Loughman used to work.
Health cash plans cover the cost of everyday medical expenses and are a popular perk offered by employers, especially those with young workforces.
Loughman was CFO from the inception of GloHealth, which was established by Oliver Tattan. Irish Life, an investor in the business, assumed control of GloHealth in 2016, and Loughman (46) was then CFO of Irish Life Health until June 2020.
In Association with
Ruth Bailey is a former head of products with Irish Life Health, and she also worked as director of product strategy at GloHealth.
Bailey explains that Vigo Health offers access to more than 30 everyday health services under one plan, at a price point of c.€480 per annum.
“We did exhaustive research, crunched the numbers and the data was stark — three out of four under-35s don’t have health insurance. You may say that’s no huge surprise, as younger people typically are less inclined to think that they may require hospital care. However, a decade ago more of the under-35 demographic was buying health insurance, and today they are not. Our hypothesis is the current product set is not meeting their needs,” says Bailey.
“There is no other product offering in the Irish marketplace that offers health connections via one platform, bringing together fast access to on-demand health advice, swift access to diagnostics, and proactive health management, as well as cover for everyday health costs without the full cost associated with hospital health insurance. Our aim is to make healthcare simple, and to encourage customers proactively to continually maintain their health and wellbeing.”
What's Covered
The cover offered by Vigo is unlimited for virtual consultations with doctors and nurses. The ‘Nurse Chat’ and ‘Ask the Doctor’ services have three channels, so customers can either send a WhatsApp message, send through online chat, or send through Facebook Messenger.
Other cover is capped, though plan members who use the benefits offered fully can, theoretically, avail of benefits up to a maximum of €4,000.
Up to ten treatments with a virtual mental health therapist are covered, and Bailey believes this offering will be popular with employers and their staff.
“What we’ve been hearing from employers is that there is a much greater realisation about bringing health and wellbeing solutions to their employees, particularly in the area of mental health,” she says. “In 2020, Ireland witnessed a five-fold increase in the use of telemedicine. Covid-19 accelerated the adoption of digital health services by several years, and virtual healthcare is here to stay.”
Also fully covered by the Vigo health plan are ten annual visits to a physiotherapist, while GP visit and prescriptions cover amounts to €200 per annum. In the alternative field, Vigo’s policy cover encompasses €50 per visit for up to ten annual visits with an acupuncturist, chiropodist, dietician, nutritionist, reflexologist, speech therapist etc. The ten annual visits limit is a combined figure, not per specialist.
Consultant fees are reimbursed up to €500 per policy year, and minor injury clinic cover extends to full cover for the first two visits and 50% cover for subsequent visits.
Multiple types of scans are covered, up to a limit of €300 per year, and Vigo will even make €50 contribution towards the cost of a mindfulness course. There’s €40 per visit cover, too, for up to seven dental treatments.
Photo: Vigo Health founders Ruth Vailey and Stephen Loughman
