Health Insurance“The market now and in the future”                  Dermot Goode                   - Cornmarket Healthcare...
Presentation Overview   Current Market    - Competition    - Price    - Consumer Trends    - Product Changes   Looking A...
Health Insurance Landscape   Three Insurers   Level ‘Playing Field’   ‘Tax Based’ Risk Equalisation Scheme   New Gover...
Cost Drivers – Irish Market   Health Insurance Levies   Public Hospital Charges   Normal ‘Medical Inflation’   Increas...
Sample Price Analysis140012001000800                                                        Jan-09                        ...
Consumer Reaction   Affordability is their biggest issue   Split Cover / Dependent Deletions / Downgrades   2.163 milli...
Membership Statistics (HIA)2,500   50.9%   51.2%   51.7%   50.6%   49.8%    47.2%2,0001,500                               ...
Health Insurance Products   Over 200 plans   Confusing terminology   Special offers & 30 day pricing   Product tweaks ...
Changing Terms & Conditions   Annual contracts   Restricted illnesses   Upgrade rules   Credit for previous membership...
Looking Ahead   Possible new entrant   Higher costs for consumers   More consumers exiting health insurance   More pro...
Community Rating – Sustainable ?   CR model needs a steady stream of younger members   Present system is ‘creaking’    -...
Consumer Challenges   Affordability   Higher premiums for reduced cover   Making ‘like for like’ comparisons   Covered...
Universal Health Insurance (UHI)- Points worth noting…   Health insurance compulsory for all   Consumers can opt for hig...
Other Developments ??   Lifetime Community Rating   Higher Excesses   Managed Care Model   More Restricted Illnesses ...
Want to save money….     HP Access – Plan B (€1,364) / HP Extra – B Options (€1,644)     - One Plus Plan (€893)     - PMI ...
More ‘Money-Saving’ Tips   Split cover   Student rates   Corporate plan equivalent   Be sensible with your accommodati...
Any QuestionsCornmarket Group Financial Services Ltd is regulated by The Central Bank of Ireland. A member of Irish Life G...
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Dermot Goode

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Dermot Goode, General Manager - Healthcare Division Cornmarket Group Financial Services Ltd
'Health Insurance - Now and in the future'

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Dermot Goode

  1. 1. Health Insurance“The market now and in the future” Dermot Goode - Cornmarket Healthcare Division - www.healthinsurancesavings.ie
  2. 2. 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
  3. 3. Health Insurance Landscape Three Insurers Level ‘Playing Field’ ‘Tax Based’ Risk Equalisation Scheme New Government Proposals Affordability Issue Increasing Cancellations
  4. 4. Cost Drivers – Irish Market Health Insurance Levies Public Hospital Charges Normal ‘Medical Inflation’ Increasing Claims Costs Ageing Population Age Profile of ‘Leavers’
  5. 5. Sample Price Analysis140012001000800 Jan-09 Jan-10600 Jan-11 Mar-12400200 0 WL2 / L2H Ess Plus HP Access (Plan B) Source HIA
  6. 6. 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
  7. 7. Membership Statistics (HIA)2,500 50.9% 51.2% 51.7% 50.6% 49.8% 47.2%2,0001,500 Total Insured Persons (000s) Total Income (€m)1,000 500 0 2006 2007 2008 2009 2010 2011
  8. 8. 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
  9. 9. Changing Terms & Conditions Annual contracts Restricted illnesses Upgrade rules Credit for previous membership Consumers must read the ‘Small Print’
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. Other Developments ?? Lifetime Community Rating Higher Excesses Managed Care Model More Restricted Illnesses Cover for Selected Public Hospitals
  15. 15. Want to save money…. 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) - Healthwise Plus – no excess (€878) - Company Care Choice (€974) Level 2 Hospital (€1,291) - Level 2 Health Excess (€860) - Business Plan Select (€951)
  16. 16. More ‘Money-Saving’ Tips Split cover Student rates Corporate plan equivalent Be sensible with your accommodation cover Mind those ‘special offers’ Annual review
  17. 17. Any QuestionsCornmarket Group Financial Services Ltd is regulated by The Central Bank of Ireland. A member of Irish Life Group Ltd.

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