Navigating Ireland’s changing health insurance landscape

With health insurance premiums continuing to rise and plan benefits changing more frequently, employers need to look beyond the headline renewal increase. Dermot Wells, head of health insurance at Cornmarket, explains how businesses can manage costs, protect employee value and get more from their health insurance investment.

If you are an employer providing health insurance, there is no escaping the fact that healthcare costs are rising and health insurance premiums are following suit.

There are a number of reasons behind these increases, and most are unlikely to go away any time soon. Claims utilisation has increased, the cost of delivering healthcare has risen, new treatments and technologies continue to emerge, and the insured population is getting older. The Health Insurance Authority’s Annual Market Report shows that average health insurance prices grew by 10.6% during 2025.  

Employers can’t control medical inflation or the underlying cost of healthcare. They can, however, control how effectively they manage their health insurance spend. And as that spend has increased, the value of getting those decisions right has increased with it.

The cost of standing still

The scale of the change becomes clearer when translated into euros. The Health Insurance Authority reported an average premium of approximately €1,200 in 2019, compared with approximately €1,950 today, an increase of more than 60%.

For employers, however, the gross premium is the relevant figure. Allowing for Tax Relief at Source (TRS), Cornmarket estimates that this equates to approximately €1,400 in 2019 compared with €2,150 in 2026 per adult life insured.

*Illustrative only, based on market-average premiums and one insured employee per premium. Actual scheme costs will vary according to plan, workforce profile, scheme structure, funding arrangements and terms.

For a business funding 500 employees, that represents an additional €375,000 a year before allowing for headcount growth or family cover. The increase reflects the reality that healthcare costs have risen. But with an additional €375,000 a year at stake, there is a strong case for taking a closer look at the scheme and the options available at renewal.

There is also an employee impact. Employer-funded health insurance is generally treated as a taxable benefit-in-kind, so the cost of the plan matters to both employer and employee.

Don’t assume the existing plan is still the right plan

One of the first things to consider is how long the scheme has been on its current plan.  If your company has been on the same plan for three years or more, it is recommended to complete a detailed review. 

There are currently over 300 plans available across four insurance providers in Ireland. The market moves quickly, with new plans, prices and benefits introduced regularly. The risk is spending too much time negotiating the renewal increase without first asking a more fundamental question, i.e. is this still the right plan?

Price is only part of that assessment. Excesses, co-payments, treatment shortfalls, outpatient limits and access to hospitals or treatments can change. Renewing the same plan does not necessarily mean renewing the same benefits.

Corporate concessions also need to be understood. Depending on the insurer and scheme, these can include premium discounts, waiting-period or upgrade concessions and wellbeing supports. Discounts can be reduced or removed at renewal, but they may also be increased to retain a scheme on a particular plan. A bigger discount does not necessarily mean better value if another plan provides comparable or better cover at a lower overall cost.

Get more from the scheme you already have

Where available, aggregated claims and utilisation data can give employers a clearer picture of how employees use their cover, from hospital and treatment patterns to day-to-day claims and digital services.

That information can guide decisions beyond the renewal. High musculoskeletal claims, for example, may point to a need for greater physiotherapy or preventative support. Low use of a digital GP service may simply mean employees do not know it is available.

The same principle applies to wellbeing. Health insurance increasingly includes services such as digital healthcare, screening, employee assistance programmes, mental-health supports, onsite initiatives and webinars.

Before spending more on wellbeing, employers should understand what they are already paying for and how well those services are being used. Employee communication matters here. Many people know they have health insurance but have limited understanding of their cover. Simple benefit guides, webinars or onsite sessions can improve awareness and help employees get more from the benefit.

Eligible employees may also be entitled to Medical Insurance Relief, so directing them to the relevant Revenue guidance can form part of that communication.

Use competition to your advantage

Competition in corporate health insurance is increasing. VHI Healthcare, Laya Healthcare and Irish Life Health are now joined by Level Health, which is actively competing for corporate business. With more than 340 plans available and new products continuing to enter the market, employers have considerable choice.

Insurers are keen to compete for corporate schemes and will often put their best proposition forward when they know the market is being properly tested. That makes regular benchmarking important, with a full tender considered where appropriate.

A good tender is not simply about asking insurers to reproduce the existing scheme for less. It should start with what the organisation wants from its health insurance programme and assess the market against those requirements.

A recent Cornmarket scheme tender covering over 1,800 members (Q3, 2026) delivered annual premium savings of approximately €200,000 while also enhancing the employer’s wellbeing proposition.

Every scheme is different, but the example shows the value of creating genuine competition. Testing the market does not necessarily mean changing insurer. The incumbent may remain the right choice, potentially on better terms or a more appropriate plan.

With four insurers, hundreds of plans and frequent product changes, this is also where independent, whole-of-market expertise can add value. The objective should not simply be to find something cheaper, but to understand the differences in cover and terms and determine whether the overall scheme remains competitive.

The same discipline should apply before adding new benefits. Dental cover, enhanced mental-health support or other benefits may strengthen the employee proposition, but employers should first consider the need, whether similar support already exists and the longer-term cost.

A simple health insurance checklist for employers

A few questions can quickly highlight where a scheme may need attention.

Manage the scheme, not just the renewal

Amid escalating costs, it is essential that businesses take proactive measures to mitigate the impact of price hikes and outdated benefit structures. For medium and larger schemes in particular, the process should begin several months before renewal, leaving enough time to review the scheme, benchmark the market and engage properly with insurers.

Insurers should know that the employer is prepared to test the market. Genuine competition, with enough time for insurers to put their best proposition forward, can materially change the renewal conversation.

Ultimately, a successful renewal is about more than negotiating the headline increase. It is about securing appropriate cover at a competitive cost, on strong terms, and ensuring employees understand and use what is being provided.

In a fast-changing market, employers are in a stronger position when they are informed, prepared and willing to test their options.