Laya Healthcare Plans To Increase Prices With An Average Of 6.5%, Effective October
Laya Healthcare plans to increase prices by an average of 6.5% from the beginning of October this year. The company clarified that it was mandatory to meet the ever-increasing demands of healthcare along with its rising costs.
A few months after the 7% price increase that was observed in April 2024, the announcement was made. The premium rates were increased two times in the last year, in October and April.
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Laya Healthcare has 700,000 customers and now it believes that growing demands have put pressure on the firm to take this step.
Its competitors, VHI Healthcare and Irish Life Healthcare have taken similar steps in order to overcome the healthcare and excessive demand costs in the same time period. It was expected that Laya Healthcare’s rising prices would raise competitive pricing in the Irish market since its acquisition by French insurance giant AXA which locked the deal with €650m last year.
The healthcare insurers argued that the reasons for higher premium costs are escalated prices as well as the intricacy of medical care.
Managing director of Laya Healthcare gives rationale for price increase
The managing director at Laya Healthcare, Dónal Clancy said, “While advances in modern healthcare, including new technologies and high-cost drugs are delivering better outcomes for our members, they are significantly driving costs up, particularly in private and hi-tech hospitals”.
The managing director is of the view that he cannot ignore the best healthcare outcomes for their valued customers, thus, a product and pricing review policy is required to meet future needs.
Laya Healthcare made forecasts recently and declared that more customers are now looking for high-quality healthcare services as compared to the past few years.
After comparing with last year’s costs, an 11% increment in private hospital claims is observed, only in the first half of the running year.
Most of the costs are taken up by cardiology and cancer-related drugs as they are the most expensive ones. Also, their demand had increased in these two sections of medical care.
Mr Clancy said that the company knows the significance of the claims that their customers have paid for and this is why the firm is here to fulfil them with intelligent decision-making. An extensive cost management strategy has become the need of the time now so that their customers can get the best they deserve, especially when it’s about health, he said.
He professed that the firm realised that a sustainable price management strategy would be the only solution that could be a win-win solution for all, keeping health “affordable for our members”, he cited.
With this, he stated details of a number of benefits that are to be introduced with the price hike so that customers could enjoy new accessible interventions with a range of plans that are easy on their pocket and according to their preference.
He assured that the changes would be communicated directly with the customers who are the direct and the most prioritised stakeholders of the plans after renewal.
One of the most highlighted excesses would be a ‘per visit’ benefit on QuickCare that would assist in getting fast treatment for minor injuries and illnesses in authorised centres. The centres would include Laya Healthcare’s own network of wellbeing clinics.
For a comprehensive overview, Laya Healthcare disclosed that insuring two adults and two children under Laya’s Signify Plus with a low excess option would now cost €3,512.38.
The manager clarified that excess prices would depend on the scheme and the level of members’ covers that entail the benefits they want to enjoy.
