That’s some difference.
Figures released by TotalHealthCover.ie has revealed that Irish families are paying up to 50% more than they should for student health insurance.
The company say that young adults could be entitled to discounts of up to 50% on their premiums but only if they are on the most up-to-date plan.
Total Health Cover’s Dermot Goode explained: “Under current legislation, insurers are allowed to charge a reduced rate for young adults aged 18-20 and then a tiered discounted rate for those young adults aged 21–25.
“So, for example, a 21-year-old may get a discounted rate of nearly 50%, whereas the discount for a 23-year-old will be in the region of 30%.
“The good news is that this applies to all young adults in these age categories irrespective of whether they are still in 3rd level education or in full-time employment.
“The bad news is that the insurers are not obliged to include this on all plans and, as a result, many consumers are totally unaware of the savings to be made.”
With Laya Healthcare, a 20-year-old on their Essential Scheme will cost €1,414 for the year. However, if this same student opted for their Simply Connect Plus corporate plan, which gives far better overall cover, they would reduce their cost to €647 which is a saving of €767 or 54%.
Irish Life Health has a similar approach. A 20-year-old on their Health Starter scheme will pay €854 for their cover but if they transfer to the new 4D Health 1 scheme, they can reduce their costs to €523 which is a saving of €331 or 39%.
Furthermore, although VHI Healthcare offers young adult rates on all plans, many students are still on dated schemes and therefore are overpaying for their needs.
A 20-year-old insured on Health Plus Access (old Plan B) will pay €717 for their cover. However, if they change to the PMI 4316 corporate plan, which might be a more appropriate cover for a young adult, they can reduce their cost to €449 which is a saving of €268 or 37%.
Goode concluded: “Our research shows that most parents are unaware of the savings available with these new young adult prices. Unfortunately, many are still paying full adult rates which could be double the premium payable for a young adult.
“Our advice is to check your charges for those young-adult dependents as some insurers will allow you to change cover mid-term. Otherwise, get your cover reviewed well in advance of the next renewal date.”
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