Just 47% of the population of 2.97m people now have some form of health insurance coverage after the private health insurance market grew 2% last year, according to the Health Insurance Authority (HIA).
HIA has outlined five key areas of priority in making the health insurance market more effective over the next three years as part of its strategy, published on Thursday (28 April).
Two areas highlighted as important to improving consumer confidence in the industry by comprehensive, transparent regulation and increased accountability were supporting an informed consumer and the authority's role in managing the €800m risk equalisation fund.
HIA will also continue its research work with the Economic and Social Research Institute (ESRI) on behavioural economics in the hopes of improving outcomes for consumers through a clearer understanding of their rights and the choices available to them.
"The HIA 2022-2024 strategic plan will empower the purchasers of private healthcare insurance,” said Patricia Byron, chair of the HIA. “
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"It will deliver: an enhanced online product comparison tool, the sharing of aggregated market data, an outreach helpline, and a consumer-focused public information campaign. This strategy expands our regulatory engagement to ensure we focus on practical outcomes for those who opt to purchase private healthcare in Ireland.”
The plan takes into account the HIA's role as a regulator, provider of consumer information, advisor to the Minister for Health, a custodian of the risk equalisation fund, and as a learning organisation committed to excellent governance standards.
"The strategy also reflects on the importance of the authority’s role in managing the risk equalisation fund, and oversight of other key aspects of health insurance regulation," said Laura Brien, CEO of the HIA.
"In order to build and maintain trust in the Authority’s role, we will place an increased emphasis on oversight of the health insurers and ensuring that they achieve high levels of compliance with the broad range of their obligations.
"We look forward to working collaboratively with all our key stakeholders across industry, government, consumer representatives and fellow regulators to deliver on the plan."
The HIA also launched its Health Insurance in Ireland Market Report 2021, which identified that the total level of claims declined sharply in 2020 as a result of the health sector response to Covid-19, and that claims in 2021 remained below 2019 levels despite an increase in health insurance coverage.
Average prices increased 2% year-on-year, with some plans increasing 9% in cost, and the HIA received over 5,000 queries from consumers, the majority of which related to comparing health insurance policies and nearly 300 complaints with a claim dispute.
People over 65-years-old are paying on average 44% more for health insurance than people under 65, and plans with restricted orthopaedic/ ophthalmic benefits have increased in popularity, with 62% of insured people on plans with restricted orthopaedic cover.
Slightly more women (51%) took out health insurance than men (49%), although coverage has increased amongst all age groups, and VHI's share of the market has dropped to 49%, while Laya Healthcare has increased its shared to 27%, and Irish Life and Restricted Membership Undertakings have remained steady at 20% and 4%, respectively.
"The authority continued to provide excellent support throughout the Covid-19 pandemic and their track record to date continues to provide confidence to consumers," said Frank Feighan, Minister of State for Public Health, Well Being and the National Drug Strategy.
"The development and implementation of this plan will continue to build on the strong foundation of trust that the authority has with all stakeholders within the health insurance market, from insurers to consumers.”
Photo: Laura Brien, CEO and Patricia Byron, Chairperson, Health Insurance Authority pictured at the launch of Health Insurance Authority’s Strategic Plan 2022-2024. (Pic: Robbie Reynolds)
