The cost of private health insurance has jumped sharply, with average prices of almost €2,000 per person forcing some people to go without cover, according to new data published on Wednesday.
As well as a spike in prices, the figures from the health insurance watchdog highlight a significant slowdown in the numbers taking out cover in the first three months of the year.
In its latest market report, the Health Insurance Authority (HIA) reports that 2.52 million people in Ireland now have private health insurance, with the average cost of a plan standing at €1,929.
That represents an increase of almost €200 compared with the average price the HIA recorded in 2024.
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The research also suggests that just 7,318 people entered the market in the first quarter of 2025 compared with 13,633 in the last three months of last year.
The findings continue a recent trend of reduced growth in the health insurance market, with the HIA’s 2024 Annual Market Report showing an increase in coverage of 1.3 per cent between 2023 and 2024, and a further decrease in the number of children insured at 21.6 per cent compared with 23 per cent in 2019).
All the State’s private health insurance companies have increased their prices in recent months, with the VHI, Laya and Irish Life Health all rolling out at least two hikes during the year, blaming an increase in claims and the higher cost of treatments.
The fresh figures from the HIA are likely to stoke fears that if prices continue to climb, private health insurance will become unaffordable for many, particularly for younger people.
These are the people who are typically in better health and make fewer claims, so they effectively subsidise the cost of healthcare for older people who are more likely to need it.
If younger people drop out of the health insurance system because prices climb too high, they are likely to put more pressure on the public system while driving up costs for insurers who will inevitably pass it on to their customers creating a vicious circle of price increases.
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“Although health insurance continues to be a very popular product purchased by almost half of the population, rising prices could potentially be affecting further growth in the market,” said HIA chief executive Brian Lee.
“At an average cost of almost €2,000, it may be that many potential consumers no longer choose to buy private health insurance due to financial pressures or other considerations,” he continued.
He stressed that there were steps consumers could take to save money and noted that “shopping around is the best way to save money on health insurance, and with a lot of consumers renewing their plan in July we recommend reviewing your plan now to see what you’re covered for and what you actually use”.
He encouraged those who are happy with their current providers to look at what other plans they have that might be more suitable, while also being more affordable.
The HIA noted that some plans that have been on the market for a long time “don’t offer as much value as newer plans [and] just by shopping around, consumers could find a plan with very similar benefits for a lower price”.
It also encouraged consumers to consider increasing the hospital excesses on their policies
“This is the amount that you pay each time you are admitted into a private hospital. If you’re in good health, looking for a plan with a higher excess can be a good way to save money.”
And it said people could consider reviewing their plans and reducing cover for benefits they don’t use.
