WITH OVER 300 plans to choose from, plus numerous terms that some people may be unfamiliar with, buying health insurance or switching providers can be confusing.
Chief Executive of The Health Insurance Authority, Don Gallagher agrees. “People have a feeling that they ‘should’ have health insurance, but they don’t know where to start,” he says.
Sound familiar? To tackle this, we asked Gallagher five big questions about health insurance – from setting a budget to what exactly a ‘waiting period’ is. Read on to see what he said…
“Spending the minimum amount means you’ll get minimum benefits,” says Gallagher. “It gradually increases; the more you put in, the more your premium increases, the more benefits you get.”
The average minimum price for a base level plan is €500 per annum, while the average person’s plan is €1,200 per annum.
Alongside this, decide whether you’d want to be treated in a private or public hospital if you got sick. Other things to consider are whether your priorities include a private room, and also the types of treatment you might require, advises Gallagher.
“People value health insurance – it gives them a form of peace of mind,” says Gallagher. “Even during the recession, health insurance was one of the last things that people dropped. Some 2.2 million people in Ireland had health insurance during the recession, and that dropped to just 2 million after the recession. People went for a lower plan rather than getting rid of insurance entirely.”
“The minimum priced plan will typically provide cover for semi-private accommodation in select public hospitals, and generally not provide any cover in private hospitals,” explains Gallagher, “whereas an average priced plan will typically provide full cover for semi-private accommodation in public and private hospitals, including hi-tech hospitals, such as the Mater Private.”
If you’re thinking of buying health insurance or switching provider, you’ve probably seen the term ‘excess’ used frequently. But what does it mean? “Let’s say you’re referred for a day case, such as cataract removal, and the bill come to €3,000,” says Gallagher. “Having an excess of €200 means you’ll pay the first €200. Any charge above that amount, the insurer will pay (in this case, €2,800).”
“If you feel that you’re in a financial position to do so, you can set your excess higher, meaning your premium will be lower.”
By setting your excess higher, you’re basically saying that you’re in reasonably good health and that, if something unexpected does happen, you can take the hit. As a result, you can expect considerable savings in premium from taking on an excess.
“It’s as if you’re self insuring up until that amount. It’s a very important point to bear in mind when you’re selecting a plan.”
“If you have a pre-existing condition – for example, diabetes – and get health insurance for the first time, you won’t be treated for that condition for up to five years,” says Gallagher. “Pre-existing conditions do eventually get covered, but there’s a period where that condition won’t be covered. This is called the waiting period. Any accidents or injuries will not be subject to a waiting period, while for new medical conditions, the waiting period is up to six months.”
However, it’s worth noting that you don’t have to complete a further waiting period when you move to another plan or insurer that has the same benefits. Any new waiting period will only apply to the increase in cover. In this case, if you have a pre-existing condition, the waiting period may be up to two years, at the discretion of the insurer, explains Gallagher.
“It’s absolutely worth doing your research,” says Gallagher. “It was once said, ‘if you’ve had the same plan for more than two years, you’re probably paying more than you should.’ And I totally agree. There are big savings to be made.”
However, less than 20% of the population who have health insurance have switched, says Gallagher.
There’s a perceived lack of information, which leads to people being reluctant to change. The more variables there are, the more reluctant people are to switch.
Gallagher offers some advice to consider if you’re comparing providers: “Be sure to look at what hospitals are covered, if you’re covered in private or public hospitals, what the benefits are, what the waiting periods are.”
The Health Insurance Authority’s comparison tool can help you narrow the choices down to find the best plan for you, from over 300 in the market. Visit The Health Insurance Authority website, or call 1850 929 166 to find out about the health insurance options available to you.
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