Less than four months after entering the Irish health insurance market, Level Health has announced a price increase, adjusting its rates by an average of 6% from early next month.
Level Health became the fourth provider in the market when it launched with four plans aimed at simplifying options for consumers. However, it has now joined the other three insurers in implementing price increases in recent months, according to a report from the Irish Times.
The insurer stated that the increase is driven by two key factors – the rise in the Government’s health insurance levy from next month, and higher claims due to increased access to healthcare across hospitals, specialist care and routine medical expenses.
Level Health chief executive officer Jim Dowdall described the price change as “necessary” and said the company remains focused on “delivering strong value, innovative benefits and sustainable cover” for members.
Health insurance costs have been rising across the sector, with providers implementing increases twice a year since the COVID-19 pandemic. The continued rise in prices raises concerns about affordability, which could lead to further cost pressure in the market.
According to the latest annual report of the Health Insurance Authority, 2.48 million people had health insurance at the end of 2023, which represents a 1.6% increase from December 2022. This implies that interest in health insurance coverage continues to grow, albeit at a slower rate.
The survey found that the primary reason for people not having health insurance in Ireland, or for no longer having it, is related to affordability, with premiums being too high or consumers not being able to afford it. On January 1, 2024, the average of the premiums paid by adult members was €1,594, up 10% from a year earlier. The average premium increased by 10% for under 65s and 11% for over 65s from January 2023 to January 2024, according to the study.