Health Insurance
“The market now and in the future”
Dermot Goode
- Cornmarket Healthcare Division
- www.healthinsurancesavings.ie
Presentation Overview
Current Market- Competition - Price- Consumer Trends- Product Changes
Looking Ahead- Future for Community Rating- Consumer Challenges- Universal Healthcare- Other Developments
‘Money Saving’ Tips
Health Insurance Landscape
Three Insurers
Level ‘Playing Field’
‘Tax Based’ Risk Equalisation Scheme
New Government Proposals
Affordability Issue
Increasing Cancellations
Cost Drivers – Irish Market
Health Insurance Levies
Public Hospital Charges
Normal ‘Medical Inflation’
Increasing Claims Costs
Ageing Population
Age Profile of ‘Leavers’
Sample Price Analysis
0
200
400
600
800
1000
1200
1400
WL2 / L2H Ess Plus HP Access (Plan B)
Jan-09
Jan-10
Jan-11
Mar-12
Source HIA
Consumer Reaction
Affordability is their biggest issue
Split Cover / Dependent Deletions / Downgrades
2.163 million insured (47.2% compared to high of 52%)
66,000 cancellations during 2011
106,000 now have cash plans only
Membership Statistics (HIA)
0
500
1,000
1,500
2,000
2,500
2006 2007 2008 2009 2010 2011
Total Insured Persons (000's)
Total Income (€m)
50.9% 51.2% 51.7% 50.6% 49.8% 47.2%
Health Insurance Products
Over 200 plans
Confusing terminology
Special offers & 30 day pricing
Product tweaks almost weekly
Increasing role of the ‘Advisor’
Financial Services Ombudsman
Changing Terms & Conditions
Annual contracts
Restricted illnesses
Upgrade rules
Credit for previous membership
Consumers must read the ‘Small Print’
Looking Ahead
Possible new entrant
Higher costs for consumers
More consumers exiting health insurance
More product complexity
Risk equalisation – new scheme
Re-designation of private beds – public hospitals
Community Rating – Sustainable ?
CR model needs a steady stream of younger members
Present system is ‘creaking’- younger ‘healthy lives’ are the ones exiting the system
Some form or Risk Equalisation is needed – risks !!
Minimum Benefits – reform needed ?
Need to progress Universal Health Insurance
Consumer Challenges
Affordability
Higher premiums for reduced cover
Making ‘like for like’ comparisons
Covered for public hospitals only
More may have to seek advice
Impact on corporate clients
Universal Health Insurance (UHI) - Points worth noting…
Health insurance compulsory for all
Consumers can opt for higher cover
Hospital performance statistics
More insurers to choose from
How will it be funded
Proper Risk Equalisation required
Implementation lead time
Other Developments ??
Lifetime Community Rating
Higher Excesses
Managed Care Model
More Restricted Illnesses
Cover for Selected Public Hospitals
Want to save money….
HP Access – Plan B (€1,364) / HP Extra – B Options (€1,644)HP Access – Plan B (€1,364) / HP Extra – B Options (€1,644)
- One Plus Plan (€893)
- PMI 06 11 (€950)
Ess Plus (€1,480) / Ess Plus (with excess) (€1,240)Ess Plus (€1,480) / Ess Plus (with excess) (€1,240)
- Healthwise Plus – no excess (€878)
- Company Care Choice (€974)
Level 2 Hospital (€1,291)Level 2 Hospital (€1,291)
- Level 2 Health Excess (€860)
- Business Plan Select (€951)
More ‘Money-Saving’ Tips
Split cover
Student rates
Corporate plan equivalent
Be sensible with your accommodation cover
Mind those ‘special offers’
Annual review
Any Questions
Cornmarket Group Financial Services Ltd is regulated by The Central Bank of Ireland. A member of Irish Life Group Ltd.
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