For cash-strapped families, health cover for children may not seem worth it, but there are ways of cutting costs, writes FIONA REDDAN
FOR MANY OF US, selecting health insurance policies is a painful process, even more so given the repeated price hikes over the past number of years. Indeed, it has become so painful that numbers are dropping out of the private system at a rate of about 6,000 a month.
Unsurprisingly then, when it comes to selecting cover for children, many are simply letting their renewals slide, taking their chances with the public system. But might giving up cover for your children be more costly than you think? And if you want to make sure they have some private cover, what are the most cost-efficient options?
Dropping cover: in favour
In light of recent price increases, private health insurance is increasingly becoming a luxury for many families. By cutting out the children from the equation, you could see your annual bill drop significantly.
After all, while health insurance might see you get a bed in a private hospital such as Blackrock Clinic, children are typically not treated in private care facilities. So, all the best doctors and care are offered by the public sector, and in Dublin by one of the three children’s hospitals.
And, as recent figures revealed, children are still spending more than 12 hours on trolleys waiting for a bed in children’s hospitals, due to “historically high” levels of overcrowding.
So, if you decide to forgo cover, the savings can be significant. For example, if you and your partner are members of Aviva’s “we plan” Level 3, the cost of insuring two children is a whopping €767; with Quinn Healthcare’s Essential Plus, it would set you back €710.46 a year. Thus the benefits of dropping cover are clearly evident.
Dropping cover: against
The main problem with dropping cover for your children is not to do with access to hospitals, but rather access to consultants. If your child needs to see a consultant, in the current two-tier health system it remains much quicker to go down the private route rather than putting your child at the mercy of the public system, with its long waiting times. And if you decide to do this without cover, with typical fees ranging from upwards of €150 a visit, the costs can add up very quickly.
Moreover, while it is possible that your child might be treated urgently for more serious cases, for elective treatments or surgeries you might find that you will have to wait quite some time. Private health insurance lets you skip the queue somewhat.
And it’s likely that one of the most common ways you’ll use your health insurance is to claim against out-patient costs for your children. If you give this up, you will be entitled to nothing back. So, that visit to the GP will cost you a full €50-€60.
Wallet-friendly options
If you are unconvinced about the merits of dropping private cover for your children, but can’t afford to insure them at the same level as yourself, it is worth shopping around to get the best deals.
One option is to try to lock into a special offer from insurance firms. For example, if you commence or renew your insurance with the VHI before March 16th, you can get free cover for your children on the One+ Plan. This could save a family of two adults and two children approximately €437 over 12 months. Another option is the Parents Kids plan, which could save a similar family about €460 over 12 months.
Aviva is also looking to increase its family business. With its Family Value product, all kids under 18 can be insured free, which means savings of more than €400 a year for a family with two children.
Quinn is another option. It is offering free cover for children and students on its Essential Select plan, which means annual savings of about €460. But, like the VHI, this has a time limit, until March 19th.
So far so good? Yes, but remember that to get free cover for your children, you have to lock into these policies which may not have been your first choice – and which may not offer as comprehensive a cover as other policies.
For example, Quinn’s Essential Starter has an annual excess of €440 per family for outpatient expenses – so you will need to spend a lot on GP visits before you will see any benefit of having this insurance policy. Moreover, it has an excess on many private hospitals, including €125 per claim in St Vincent’s Private.
Another option to protect your family against incurring sizeable medical bills is to consider looking for an outpatient-only insurance product, or a cash plan from the HSF. However, it’s important to note that this won’t give you any advantage when it comes to getting treated in a hospital quicker.
The VHI’s Healthsteps Silver product costs €75 per child but gives €25 back for up to seven GP visits; €60 on up to seven consultant visits; plus €25 for seven non-emergency dental visits. Children can only be registered as part of an adult policy, which costs €180 a year.
Similarly, Day to Day Me from Aviva costs €99 per child and offers €30 back for three GP visits; €30 for three non-emergency dental visits, but nothing back on consultant appointments.
Another option is a so-called cash plan, which gives you money back on a variety of medical expenses. For example, with the 2650 plan from HSF, for €26.50 a month, or €318 a year, you could get €13 back on up to 10 GP visits a year for your family, and €7 for four prescription charges.
Finally, remember that babies are typically free in the year of their birth, so be sure to add them to your health policy as soon as possible. And, don’t forget to include any medical expenses incurred by your children on your Med 1 tax form.
