Irish Health Insurance Premiums Up 11% in 2023 Amid Reduced Coverage
Irish health insurance premiums rose by almost 11% last year, while coverage decreased, a trend dubbed «shrinkflation.» This forces consumers, especially older individuals, to pay more for fewer benefits, with common procedures like hip and knee replacements facing restrictions. Despite this, policy numbers grew, as people opt for cheaper plans amid rising costs.
The Health Insurance Authority (HIA) reports that average health insurance premiums in Ireland increased by almost 11% last year, despite a reduction in coverage across many plans. This trend, described as «shrinkflation» by health insurance adviser Dermot Goode of Health Insurance Ireland, means consumers are paying more for fewer benefits.
Insurers like VHI, Laya, Irish Life, and Level Health have announced increases, citing rising treatment costs and demand for private care. Benefits are being reduced through increased excesses, restricted hospital networks, and varying co-payments. This particularly impacts older people who rely on comprehensive cover for procedures like hip and knee replacements, which are now often partially covered or restricted.
The HIA noted an almost 10% increase in people on plans with restricted orthopaedic cover over the past decade. Goode warns that consumers, especially those who auto-renew, risk paying more for less cover. He advises shopping around annually, particularly if spending over €3,500 per adult, as the market is rapidly changing. Despite reduced coverage and rising costs, the number of policies grew by 1.2% between 2024 and 2025, with 2.55 million people (almost 45% of the population) holding private health insurance by the end of 2025. Consumers are increasingly opting for cheaper, less comprehensive policies.