Private insurance companies have announced plans to cut insurance during the COVID-19 outbreak.
It comes after the country’s private hospitals were re-purposed for use in the public sector to increase intensive care capacity during the outbreak.
That led some customers to complain that they were paying premiums to receive the same level of care as patients in the public system.
VHI
In a statement, VHI said it was cutting its premiums by half on average for as long as the deal remains in place.
It said the deal was “the right decision at the right time,” even if it would limit access to private hospitals for VHI customers.
It said the deal fundamentally changes the nature of the service on offer with claims likely to fall while it is in force.
“In recognition of this all VHI private health insurance customers will see premiums waived by an average of 50% over the next three months according to their plans.”
Acting CEO Declan Moran said: “We are fully supportive of the government’s efforts to have a single united response to fight this crisis and VHI is committed to playing its part.”
“We have put in place a mechanism that addresses the changed manner in which some services can be delivered.
"We are doing this in as transparent and fair a manner as possible across our different customer groups.”
Laya Healthcare
Meanwhile, Laya Healthcare said it was redirecting savings from a reduction in claims to its customers.
It said every adult member would receive €195, with every child receiving €60.
The payments will be split into three instalments and paid in April, May and June.
Irish Life
Irish Life said it was returning between 36% and 60% of premiums to private customers for the next three months.
Meanwhile, customers with largely public hospital cover will receive 17% to 21%.
The reduction will be applied retrospectively to premiums paid by customers for April, May and June and subtracted from premiums due in the coming months.
The company said it would make “other adjustments” if the deal lasted longer than three months or if the reduction in claims is different than expected.
Managing Director Jim Dowdall said the reduction was as big as it could be while also “ensuring we are in a position to pay ongoing and future claims.”
COVID-19 deal
In a statement, the Health Minister Simon Harris said the country’s three main private insurers would be announcing financial supports for customers.
“I welcome the measures announced by each of the insurers today, which are focused towards assisting health insurance customers impacted by the Covid-19 national response,” he said.
“The measures announced are being taken in recognition of the temporarily changed landscape in which health insurers currently operate.
“I am pleased that insurers are exercising forbearance and providing appropriate assistance to their customers during this most challenging time.”
Insurance
VHI is also returning up to 30% of the premiums paid for dental insurance for the same period.
He said the company was also promising to make an “additional return of value to customers this year” if claims are lower than currently expected.
The company said it would continue to pay claims for treatments that fall outside the new agreement and will pay the public hospital charge where required.
It is also putting in place a range of supports for customers who are struggling financially because of the outbreak but want to keep their health insurance.
Mr Moran said a specialist team of advisers has been set up to work with any customer in difficulty.