Scared of Switching Health Insurance? Save €€€ - Without Losing Cover!

When did you last change your health insurance plan? If you’ve had the same policy for several years, you could be paying over the odds for cover.

Auto-renewing your current health insurance policy can seem like the easiest way to continue protecting your family’s health. There are over 320 plans available in Ireland, each with their own benefits, premiums and excesses. As a result, finding a new plan to meet your needs can feel overwhelming and time consuming.

But in many cases, thoroughly reviewing and comparing plans can save you hundreds on your health insurance bill. Here’s what you need to know about switching health insurance providers.

 

The Price of Loyalty

Often, people can feel loyal to their insurance provider – particularly if they’ve been with them for a long time and had a consistently positive experience. But, in many cases, customers pay for this loyalty with higher premiums.

All three of Ireland’s health insurance providers – Laya, Vhi and Irish Life Health – regularly increase their premiums for older plans, while introducing new, often similar plans at a lower cost. So, if you’ve stuck with the same plan for several years, the chances are you’ve seen your costs rise year-on-year – and there may now be a more suitable, more cost-effective plan available.

In fact, despite all customers being entitled to the same premiums and coverage regardless of their age, with the exception of loadings for those who first took out insurance after their 35th birthday, research from the HIA shows that those over the age of 65 generally pay 34% higher premiums than younger people.

While this is partially due to the higher level of cover often desired by older people, the higher premiums are also a result of a general reluctance to change plans and providers. According to the Independent, “older members are more likely to be insured on plans that have been on the market for 10 to 20 years” – resulting in many people facing an additional €1,000 in annual costs.

 

Will I have to Re-Serve My Waiting Periods?

Typically, you won’t face any waiting periods before your new policy takes effect if you’re switching directly from one plan to another. Even if you’re changing to a different provider, your new health insurer must honour the waiting period you served when your first took out health insurance.

If you switch providers in the middle of waiting period, the amount of time you’ve already served will be carried over to your new insurer. For example, if you’re serving a 5-year waiting period for a pre-existing condition and change insurers after one year, you will only have a 4-year waiting period with your new provider.

There are only two circumstances that could result in you serving a waiting period before your new policy kicks in:

 

  1. If there’s a break of 13 weeks or more between your previous policy closing and your new policy starting.

If you wait more than 13 weeks to sign up to a new plan, you will be treated as a new entrant and face standard waiting periods of 26 weeks for new illnesses and 5 years for pre-existing conditions.

  1. If you are upgrading to a higher level of cover.

If your new, increased cover relates to a pre-existing condition, a 2-year waiting period will apply for the additional cover. Your previous level of cover will be maintained without a waiting period, so you won’t lose out on any benefits by switching.

If you’re adding day-to-day benefits to your cover, you may face a waiting period before these benefits come into effect, depending on your provider and age:

  • Vhi: 26-week waiting period for over-50s; no waiting period for under-50s
  • Irish Life Health: 26-weeks for over-55s; no waiting period for under-55s
  • Laya: No waiting period for higher outpatient benefits.

 

So, if you directly change from one plan or provider to another in less than 13 weeks, you will not lose out on your existing level of cover.

 

When Should I Switch?

The best time to switch health insurance plans or providers is at renewal – which is generally 12 months after you first took out, or last renewed, your policy. Check your policy documents if you’re unsure of your renewal date.

All three health insurers provide a 14-day cooling off period, starting from the date you took out or renewed your policy. In this time, you can cancel your policy, get a full refund and switch to an alternative plan or insurer without cancellation charges.

Irish Life Health, Laya and Vhi will also allow you to change plans mid-contract, provided you stay with the same insurer. However, if you want to change providers before your contract ends, you will have to pay the following penalties:

 

  • Irish Life Health: A health insurance levy will be charged, calculated on a pro-rata basis for the remaining policy term and for each person on the policy. There’s also an additional €25 administration fee per policy.
  • Laya: The full year’s premium, regardless of when you cancel after the cooling off period.
  • Vhi: If you’ve made no claims, you will be charged a health insurance levy per person on a pro-rata basis for the remaining policy term. An additional €50 administration fee will also be charged per policy. However, if you’ve made a claim since your last renewal date, you’ll be charged the full year’s premium.

So, if you want to avoid significant cancellation charges, we recommend conducting a full review of your needs, plan availability and costs in the month leading up to your renewal date. This way, if you do change providers, you won’t face any additional fees or waiting periods to continue your existing level of cover.

 

Finding a Better Plan for You and Your Family

Health insurance in Ireland is far from straightforward. Not only are there over 320 plans available, but new plans continue to be introduced, while prices and benefits for existing plans are changing year-on-year. As a result, finding the best plan to meet your unique needs, priorities and budget can be challenging.

But by switching plans or providers, you may be able to save hundreds – even thousands – on your health insurance premiums, while ensuring you’re covered for everything that matters to you and your loved ones.

At HCC.ie, we take the stress and hassle out of comparing and selecting health insurance. Our experts will work with you to understand what’s most important to you and your family, and compare all plans on the market to find the one that’s right for you.

Is your health insurance coming up for renewal? Let us know your contact details and renewal date below, and we’ll be in touch to offer our expert advice.