Irish consumers and businesses will be hit with significant health insurance premium increases in 2023, with some premiums rising by as much as 10%, a new report on the sector suggests.
According to WTW’s 2022 Global Healthcare Trends Report, healthcare inflation has risen to 8% in Ireland in 2022.
And rising health insurance premiums could push the market back to a situation where the lack of affordability forces a significant number of people to once again abandon private insurance. Many opted out of health insurance as a result of the financial crisis, according to one expert at a global insurance advisory firm.
The combination of an aging Irish population and rising costs to provide care to patients means that prices in this sector are likely to rise even if other inflationary trends in the economy fade. , says the WTW report.
In 2022 Ireland’s healthcare inflation rate has risen to 8%. This trend is likely to continue for the foreseeable future.
According to David Glennon, the most immediate impact on companies that subsidize health insurance for staff who have not yet fixed prices, or for individuals who pay for their own premiums, will be the series of 2023 and beyond. , Director of WTW Health and Benefits, Ireland.
“Health insurance prices have stabilized in recent years, and insurers have actually refunded premiums to customers on several occasions because claims dropped dramatically during the Covid-19 pandemic.” said Glennon.
“We are now seeing charges from both private and public hospitals beginning to return to normal levels, which will put pressure on pricing.
“Increase varies by plan, but we expect enterprise plans to grow by 5-7 percent in 2023. Personal plans may see even higher growth.”
One of the main drivers of rising prices in the sector is that both private and public hospitals are seeking higher payouts from health insurers as pressure on their cost bases increases. .
“Most of the revenue for private hospitals comes from health insurance.
Glennon said staffing issues and rising labor costs were the main drivers of the hospital’s rising cost base. Public sector wage negotiations were backdated to February 2022, based on proposals put forward by the Workplace Relations Commission, in which he offered a 3% wage deal and the union agreed that in his two years, he would pay 6.5%. Ended with an offer to increase.
Labor costs increased 3.85% due to the restoration of Haddington Road opening hours.
Hospitals are also facing rising energy costs and general inflationary pressures, and after a decline in 2022, Health Minister Stephen Donnelly said the health insurance tax would be increased by €32 to €438 on regular health insurance policies. announced that it will be
Containing a broader analysis of global healthcare companies and including details for two Irish insurers, the report finds that all of these different cost pressures will increasingly affect individual premiums over the next year. This suggests that it is set to give
