Health insurance costs continue to rise sharply across the Irish market. Over the past 12 months, all major insurers have announced premium increases, with annual uplifts of 10% or more now a regular feature of renewals for many employers.
What’s causing rises?
The drivers behind these increases are not difficult to identify. The most significant factor is the continued growth in the scale and cost of claims across the private healthcare system. Demand for private healthcare services remains high, and more people are accessing treatment through their insurance policies. Alongside this, medical inflation continues to outpace general inflation, with the cost of procedures, hospital care, and specialist treatment steadily rising year on year.
Another contributing factor is the increase in the health insurance levy (opens a new window) – which is designed to support the risk equalisation system in Ireland’s community-rated market. While the system plays an important role in maintaining fairness across insurers, the levy ultimately feeds into the overall cost of premiums.
However, rising premiums are not the only issue employers need to watch closely. Changes to plan benefits are becoming increasingly common. A notable example is Laya Healthcare, which has reduced benefits on more than 70 plans. This creates a particularly challenging situation for employers: even if they renew employees on the same plan as the previous year, they may face both a higher premium and a reduction in the level of cover provided.
Taking action now
For employers, this means that simply renewing on a like-for-like basis is no longer a prudent approach. Instead, organisations should take a more strategic and proactive view of their health insurance programmes. Employers should consider the following actions:
Test the market regularly
With four insurers operating in Ireland, regularly reviewing alternative options with your current insurer or the wider market can help ensure value for money and benefit suitability. New plans are launching across all insurers, and these generally offer better value for money.
Use claims data to inform decisions
Understanding how employees access healthcare allows employers to align plans more closely with actual utilisation rather than perceived value.
Plan beyond the next renewal
With little indication that medical inflation will ease, employers should assess the long‑term sustainability of their current approach and consider strategic adjustments over time.
Health insurance remains one of the most valued benefits for Irish employees. However, maintaining meaningful cover while managing cost pressures now requires proactive oversight, data‑led decision‑making, and a clear long‑term strategy.
Lockton People Solutions works with employers across Ireland to help them navigate rising medical insurance costs through data‑led insight, market expertise, and strategic programme design. By analysing claims experience, benchmarking insurer options, and supporting informed decision‑making, we help organisations manage cost pressures, while continuing to deliver high‑value health benefits for their workforce.
