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Irish Life Health has confirmed that it will apply another round of premium increases from January 2026, with prices rising by an average of 5 per cent across its policy range. The change will affect both new customers and existing members whose renewals fall due from the start of the year.

This marks the fourth increase by the insurer within a twelve month period, following rises already applied in January, April and October. Other providers have also increased rates, with VHI up 3 per cent and Laya up 4.5 per cent since October, while new market entrant Level Health intends to hold its rates until February.

Irish Life Health, which covers around half a million people, cited the continuing escalation in healthcare delivery costs as the core pressure behind the latest adjustment. The company noted the growing availability of advanced treatments and specialist care, which offer significant clinical benefits yet carry higher costs.

Managing Director Ann Marie Nestor acknowledged the timing is challenging for many households but said the insurer remains focused on offering a diverse range of plans to suit differing budgets. She also emphasised Irish Life Health’s ongoing investment in digital services and proactive health supports to improve customer experience.

Impact on customers

Health insurance expert Dermot Goode warned that the latest increase adds to what he described as a “perfect storm” for consumers, as nearly half of all policyholders – around 1.25 million people – are due to renew between December and February. He noted that the timing amplifies the financial strain, with some households likely to face multiple cumulative increases.

According to Goode’s estimates, the 5 per cent rise could add between €65 and €125 per adult for plans covering public and private hospitals. Typical families may see costs increase by €160 to €255. Those on more comprehensive policies or older schemes may face even higher increases. However, customers who renew on 31 December will not experience this latest hike until the end of 2026.

Wider reaction

The announcement has prompted criticism from some quarters. Social Democrats TD Rory Hearne argued that raising prices during a period of strong corporate profitability is unacceptable, calling for stronger Government intervention on what he described as profit and price gouging.

Consumer expert Darragh Cassidy of Bonkers.ie highlighted that while individual increases of two or three per cent may appear modest, the cumulative effect across multiple hikes in a year can be substantial. He noted that some policyholders renewing in early 2026 could see their overall premium rise by as much as 12 per cent.

Cassidy also pointed out that a small proportion of customers may face even larger increases because the 5 per cent figure represents an average across policies, rather than a cap. He advised consumers to review their cover carefully, particularly those on older plans that may no longer represent value.

What policyholders should consider

With sustained upward pricing pressure across the private health sector, households may need to reassess their cover more proactively. Switching to a newer plan, reviewing benefits that are no longer needed, or comparing alternative insurers may help reduce the impact of rising premiums.

The broader trend of post-pandemic cost increases means that rebates offered during Covid-19 are now firmly in the past, and the market is experiencing continued inflation in claims and treatment costs.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.