Laya Healthcare is increasing premiums on 65 of its health insurance policies by an average of 4.7%, equating to roughly €80 per adult annually, effective from the start of April. The move marks the provider’s third price increase in just over a year, following hikes of 4.5% last October and 6.6% in April 2025. While 37 plans will remain at current prices, 16 older plans are being retired, with Laya promising to migrate affected members to “suitable and better value alternative plans.” However, the Health Insurance Authority (HIA) has clarified that policyholders are not obligated to accept these proposed replacements and are free to explore options across the entire market.
The increases come amid a broader trend of rising health insurance costs in Ireland, with Vhi, Irish Life Health, and Level Health also having announced price adjustments this year. According to Dermot Goode, Director of Health Insurance Ireland, the actual cost impact will vary significantly depending on the specific plan held, ranging from €62 to €217 per adult. For families on mid-level schemes, the annual increase could fall between €148 and €203. Some plans will see increases as high as 9%, with Laya’s popular Simply Connect Plus scheme expected to rise by 9.6%, adding €261 per adult or €520 annually for a retired couple.
The escalating costs are being attributed to rising healthcare expenses, particularly in areas like oncology, cardiology, orthopaedics, and spinal surgery. Laya reports a 15% increase in costs for private and high-tech hospital bills, driven by increasing demand for private care. Goode notes a significant shift in patient behavior, with individuals increasingly opting for private treatment, bypassing the public system. This trend, while offering patients quicker access to care, is placing considerable strain on private healthcare providers and, on insurance companies.
“The days of just looking at the premium are gone,” Goode told RTÉ’s Drivetime. He explained that Laya attributes the price hikes to a 10-15% increase in both the volume and cost of claims originating from private hospitals. He cautioned against relying solely on average figures, urging consumers to carefully assess the impact on their individual plans. Goode also highlighted a concerning pattern of benefit reductions accompanying the price increases, with approximately 30 of Laya’s most popular schemes experiencing changes to their coverage levels.
“People will be asked to technically pay more for less cover,” Goode warned. This means some policyholders may find themselves facing higher premiums for reduced benefits, potentially necessitating a switch to alternative providers to maintain their desired level of coverage. He pointed out that some individuals with a 20% shortfall in their coverage – the amount of treatment not covered by their plan – could see that shortfall increase to 40% under the revised Laya plans, while other providers may offer to maintain the 20% shortfall.
The scale of these benefit changes has surprised industry observers. Goode emphasized that the health insurance market is becoming increasingly competitive, with numerous new plans emerging. He believes that consumers who actively negotiate and compare options can often find alternative plans offering similar benefits at a lower cost. However, he also acknowledged that the consistent pattern of price increases – typically occurring in January with Irish Life, March with VHI, and April with Laya, followed by a second round of increases in October – is becoming a predictable feature of the Irish health insurance landscape.
Goode suggests that consumers should now budget for annual premium increases of around 10%, a significant jump from the previously anticipated 5%. The situation underscores the growing financial burden of private health insurance in Ireland and the increasing complexity of navigating the market. The HIA’s reminder that policyholders are free to switch providers highlights the importance of proactive comparison shopping and underscores the need for consumers to understand the full implications of any proposed plan changes.
Laya’s decision to retire 16 older plans and automatically map members to alternative options raises questions about transparency and consumer choice. While the company asserts these replacements offer “better value,” the HIA’s intervention emphasizes the policyholder’s right to independently assess all available options. The ongoing cycle of price increases and benefit adjustments suggests a fundamental challenge in balancing affordability and access to quality healthcare within the Irish private insurance system.
