Private Health Insurance Ireland: Benefits, Coverage & Costs

Ireland’s public healthcare system provides essential services, but many individuals turn to private health insurance for faster access to care and enhanced treatment options.

As an employer, including private health insurance in your benefits package is a strategic investment in your team’s well-being and productivity. It shows you care about their well-being, helps you attract top-notch talent, and keeps your employees happy and productive.

In this guide, we’ll explore everything you need to know about private health insurance in Ireland and how employers can easily provide and manage health coverage for their teams.

What Is Private Health Insurance?

Private health insurance is a policy that covers the cost of private medical care in hospitals or from healthcare professionals. 

It offers access to private hospitals, shorter waiting times for procedures, and additional benefits like outpatient consultations, diagnostic tests, alternative therapies, etc., depending on the level of cover.

These health insurance plans are usually available on an individual or group basis — including coverage for families and your employees.

Want to offer private health insurance to your Irish team? 

Use Kota! 

Our modern benefits management platform helps you manage employee health insurance effortlessly. We partner with Irish Life Health to provide comprehensive group health insurance plans, making it easier than ever to offer valuable healthcare benefits to your team.

Is Private Health Insurance Mandatory in Ireland?

No, but it’s recommended. 

Ireland has a public healthcare system where residents can access services through the HSE (Health Service Executive). However, many choose to purchase private health insurance for extra peace of mind and financial protection against unexpected medical costs. 

According to the Health Insurance Authority Market Report 2023, 2.48 million people in Ireland — 47% of the population — have private health insurance.

With challenges in the public system, such as long wait times, private cover ensures access to care when it's needed most.

What Does Irish Private Health Insurance Cover?

Private health insurance in Ireland typically covers a range of medical costs, from routine healthcare to specialist treatments.  

While coverage varies by policy, some benefits include:

• Hospital Cover: Covers inpatient hospital costs, including stays in public, private, or high-tech hospitals, depending on the plan. Some policies offer semi-private rooms in public hospitals, while premium plans cover private rooms in private hospitals.

• Outpatient Cover: Pays for medical care that doesn’t require an overnight stay, such as GP visits, specialist consultations, diagnostic tests, and minor procedures.

• Maternity Benefits: Covers maternity-related expenses, including private hospital stays, antenatal visits, and postnatal care. Some policies also offer benefits for fertility treatments.

• Cash Benefit Plans: Provides a fixed cash payout for specific medical events, like hospital stays or surgeries, regardless of actual treatment costs.

• Dental and Optical Cover: Some plans include benefits for routine dental check-ups, treatments, and optical care, including eye tests and prescription glasses.

• Allied Health Services: Some policies include cover for mental health support, physiotherapy, occupational therapy, speech therapy, etc.

• Overseas Medical Cover: Covers emergency medical treatment while travelling abroad, useful for your employees who travel frequently for work.

• Consultation Fees: Helps cover costs for specialist consultations and second opinions, reducing out-of-pocket expenses.

• Medical Tests & Scans: Covers diagnostic services like blood tests, MRIs, CT scans, and X-rays, depending on the plan’s level of coverage.

For instance, with the Irish Life Health 4D Health 1 plan, your employees can get coverage for hospital visits, female health consultations, maternity benefits, digital doctors, scans and more. 

Private Health Insurance as an Employee Benefit In Ireland

Here are five reasons why you should offer private health insurance to your staff: 

1. Better Access to Medical Care

The public healthcare system often faces challenges such as long wait times and limited options for specialist care. 

Providing private health insurance allows your employees to access private hospitals, choose their preferred consultants, and receive timely medical attention, ensuring they remain healthy and productive.

2. Higher Job Satisfaction

A Glassdoor Economic Research survey found that health insurance as an employee benefit correlated highest with job satisfaction.

Companies that focus on their employees' health show that they value their employees — improving their trust in the organisation.

Health coverage becomes one less thing for them to worry about, and they can instead focus on improving your business' bottom line.

3. Improved Productivity

Sick employees severely impact your company's productivity.

But it's not just the cost of sick days you have to deal with.

You also must consider reduced productivity — when employees work while recovering from illnesses or have to look after a sick family member.

How does private medical insurance help here?

Employees have fast and easy access to better healthcare and can decide where to receive the best treatment. This results in a healthier team that calls in sick less often, leading to more productive and profitable results for your business.

4. Stronger Employee Retention

Private health insurance helps build a healthy workforce and improves loyalty, contributing to employee retention.

Prioritising retention is essential since replacing employees can be very costly for companies — especially small businesses.

Private health insurance can increase employees' sense of security about their jobs. This can help you retain employees for longer and reduce employee turnover costs.

5. Greater Competitive Advantage

Providing private medical insurance to your team could set your business apart.

Job seekers tend to look for places that offer more than a salary and fringe benefits — especially in an industry dominated by small businesses.

When potential employees see that you provide health insurance, you have a better chance of landing highly skilled and motivated talent.

Manage Employee Private Health Insurance in Ireland With Kota

Kota makes it easy to offer private health insurance to your Irish employees easily via Irish Life Health. 

Set up and scale your benefits as needed and give employees complete flexibility over their health insurance packages. You can even integrate benefits with your HR and payroll tools to sync employee data and further reduce administrative overheads. 

All you have to do is:

• Set a budget and decide on contributions.

• Create a benefits package.

• Add your employees to the benefit. 

It’s that simple! 

Join Kota and enrol your team in minutes. 

Private Health Insurance Providers in Ireland

Ireland has five private health insurance providers:

• Irish Life Health

• VHi Healthcare

• Laya Healthcare

• Level Health

• HSF Health Plan (only provides cash benefit plans)

When selecting a private health insurance provider, consider your employees’ needs, coverage flexibility, and ease of administration.

Let’s go over each provider quickly:

1. Irish Life Health

Formed in 2016 from the merger of Aviva Health and GloHealth, Irish Life Health offers comprehensive, flexible health insurance plans designed to support your employees' well-being.

Why Choose Irish Life Health for Your Business?

They offer various health insurance plans, including preventative benefits, to help your employees live healthier lives. 

• Broad Hospital Coverage: Access to public, private, and high-tech hospitals.

• Comprehensive Outpatient Care: Coverage for consultant fees, diagnostic tests, and GP visits.

• Maternity & Female Health Benefits: Support for maternity care, fertility treatments, and women’s health services.

• Wellness & Alternative Therapies: Access to physiotherapy, chiropractic care, acupuncture, and wellness programs.

• Mental Health Support: Coverage for counselling, psychiatric care, and stress management services.

• ExpressCare & Urgent Care Access: Access to ExpressCare clinics and 20+ Minor Injury Clinics across Ireland.

• Digital Health Services: Remote healthcare options, including Digital Doctor consultations.

• Acute Back & Neck Pain Support: Specialist advice and treatment for musculoskeletal issues.

Even better?

Kota partners with Irish Life Health to offer businesses a seamless way to provide private health insurance. From enrolling your team to giving them complete control over their plans, Kota simplifies the process — ensuring your team gets the health benefits they deserve. 

Even if you already use Irish Life Health for your teams, Kota can easily integrate with your current setup.

Get started with Irish Life Health & Kota today!

2. Vhi Healthcare

Founded in 1957, Vhi Healthcare is Ireland's oldest and largest health insurance provider. 

They are well known for their Vhi 360 Health Centres, offering members fast-track access to GP services, diagnostics, minor injury treatments, and specialist care.

Their plans cater to various healthcare needs, from basic hospital cover to high-end policies with enhanced maternity benefits and international medical cover.

3. Laya Healthcare

Previously known as Quinn Healthcare, Laya has been serving the Irish market since 1997. 

Their policies often include health screenings, digital doctor consultations, and workplace wellness programs.

4. Level Health 

Launched in late 2024 and backed by Aviva, Level Health offers four straightforward plans: A, B, C, and D. 

These plans feature unlimited telemedicine services, 24/7 access to healthcare professionals, and worldwide travel insurance, catering to modern healthcare needs.

5. HSF Health Plan (Cash Benefit Plans Only)

Operating in Ireland since 1991, HSF Health Plan is a not-for-profit organisation specialising in health cash plans. 

Unlike traditional insurance, they provide cash benefits for various healthcare expenses, such as GP visits, prescriptions, dental care, and hospital stays, offering a flexible approach to managing everyday health costs.

Who Can Join Private Health Insurance in Ireland?

As an employer, you should understand the regulations governing private medical insurance, especially if you're offering it as an employee benefit. 

In Ireland, health insurers must follow three key principles: 

• Open Enrolment

• Lifetime Cover

• Community Rating. 

These rules ensure fair access to private health insurance for employees of all ages and health statuses.

Let's discuss these principles:

1. Open Enrolment

Health insurance companies must accept anyone who wants to join a plan regardless of sex, age, or health status.

However, they can impose waiting periods of up to 26 weeks and limit coverage based on policyholders’ health conditions.

Restricted membership schemes must accept any person qualified to join the plan.

What is a restricted membership scheme?

It’s a health insurance plan that is only available to specific types of employees, such as a plan open only to Gardaí or health workers.

2. Lifetime Cover

Once your employee joins a health insurance plan and continues paying premiums, the insurer cannot withdraw their coverage. This is known as lifetime cover. 

Your employees can also switch insurers without losing their cover if the change is made within 13 weeks of leaving their previous policy.

3. Community Rating

Community rating ensures that insurance companies charge the same rate for a service from everyone — regardless of age, sex, and health status.

However, there may be exceptions, such as:

• Reduced charges for people under 25.

• Retirees can have specific health insurance arrangements within their company's scheme. 

• Costs for children are usually reduced by about 50%.

What Is Lifetime Community Rating?

LCR means your employees' health insurance premium depends on their age when they first bought insurance. The longer they wait, the higher the premium.

For example:

• An employee who first buys health insurance at 25 will continue paying the lower rate, even at 40.

• An employee who waits until 40 to take out cover will pay a higher premium than someone who joined at 25.

You should encourage your employees to join health insurance plans early to avoid future cost penalties.

Learn more about Lifetime Community Rating (LCR) and how it works in our in-depth guide.

Is There Tax Relief for Irish Private Health Insurance Premiums?

Anyone with a private health insurance plan from an approved insurer can get tax relief on their premiums.

Your employees don't have to claim tax relief from the Revenue. Instead, they get it as a reduction in the insurance premium. This is called Tax Relief at Source (TRS).

For all health insurance policies, tax relief is provided at 20% for VHI plans and 19% for Laya and Irish Life plans.

However, for plans started or renewed after 16 October 2013, relief is limited to the lower of either:

• 19% or 20% of the premium paid (depending on the insurer) or 

• 20% of €1,000 per adult and €500 per child

Anyone under 21 is considered a child for health insurance tax relief purposes.

But look:

TRS doesn't apply in certain instances.

For example, if you, as an employer, pay health insurance premiums for your employees, the premium is considered a benefit-in-kind, and taxes are due on that amount.

Your employees can directly claim tax relief from Revenue when the premium is regarded as a benefit-in-kind.

15 FAQs About Private Health Insurance Ireland

We’ll answer some common questions about Irish private health insurance:

1. Is Private Health Insurance Worth It?

Absolutely! 

For employers, health insurance can help attract and retain talent while showcasing genuine care for employee well-being. It often reduces absenteeism by enabling quicker access to treatments. 

For your employees, coverage minimises financial stress and provides faster routes to quality care. It also supports better mental well-being by offering peace of mind about healthcare.

2. How Are Health Insurance Providers Regulated?

The Central Bank of Ireland regulates health insurers financially, while the Health Insurance Authority regulates the legal and statutory aspects.

3. Am Employers Legally Required to Insure Every Employee?

No. You may choose to insure specific groups (e.g., senior management) or all staff as a broad benefit. 

Offering comprehensive plans across the board often boosts staff retention, recruitment, and overall employee satisfaction.

4. What Should My Employee Health Insurance Plan Include?

Based on your budget, you can start with coverage for outpatient services and increase it to cover inpatient hospital charges.   

Ideally, you should focus on the benefits from which your team would derive the best value. 

Think about your team’s demographics, for instance. A younger workforce may prioritise mental health coverage, while employees planning families may value maternity coverage.

5. What Is the Best Private Health Insurance Provider in Ireland?

The “best” insurer depends on cost, coverage, customer service, your team’s needs, and other factors.

Compare quotes, benefits, and add-ons among multiple providers. Some may excel at maternity coverage, while others might offer better travel or mental health benefits.

Consider using the HIA’s comparison tool to determine the best medical insurance provider and plan for your team. 

6. How to Choose the Right Health Insurance Plan in Ireland?

Selecting the most suitable plan for your business involves careful evaluation:

• Assess Employee Demographics: Determine the age range, family status, and common health concerns in your workforce.

• Prioritise Key Benefits: Maternity coverage, mental health services, or extensive outpatient benefits might be essential for your staff.

• Compare Multiple Providers: Look at quotes, benefit structures, and service reviews. 

• Check Network Hospitals: Ensure the insurer has robust hospital networks in areas where employees live and work.

• Review Policy Limits & Excesses: Higher excesses can lower premiums but shift more cost to employees when claiming.

7. Do Employees Need Private Health Insurance for Maternity Services?

Expectant employees are entitled to free outpatient, inpatient, emergency, and accident services in public hospitals throughout pregnancy and birth.

However, giving your employees access to health insurance can greatly improve their maternity experience since they’ll get quicker access to better quality care.  

You can offer maternity and fertility add-ons with your health insurance benefits through Kota. 

8. Does Private Health Insurance Cover Overseas Travel for Employees?

Most Irish plans include emergency medical coverage abroad.

If your employees often travel, opt for plans with specific or extended travel benefits. All Irish Life Health 4D plans have a travel add-on that could be perfect for such employees.

9. How Much Is Private Health Insurance in Ireland?

According to the Health Insurance Authority’s Q3 2024 Report, the average adult premium is €1,712.

Entry-level plans, such as Irish Life Health’s Kick-off Plan, start as low as €60–€70 per month per employee, depending on the level of coverage. Additional benefits, like maternity add-ons, may raise premiums.  

10. Are Health Insurance Costs Rising in Ireland? 

Yes, premiums increased by 11% in 2024 compared to 2023. 

The following providers hiked prices in January 2025: 

• Irish Life Health: An average increase of 3.7% (130 plans).

• VHi: An average rise of 6-11% (11 plans). 

• Laya: An average increase of 2-10% (13 plans).

This is mainly due to increased healthcare costs, including higher claims, new technologies, and rising labour costs within the health insurance sector. 

11. How Can Employees Switch Private Health Insurance Plans?

Here’s how your employees can switch their insurance plan:

• Review current coverage, benefits, and costs.

• Use comparison tools to evaluate different plans available in the market.

• Check for any waiting periods for new benefits and any penalties for switching.

• Contact potential new insurers 45-60 days before your policy's expiry.

• Submit their application to the new insurer for decision.

• Switch on the renewal date to avoid penalties.

Your employees should review all the policy documents to understand their level of coverage. They must also cancel the direct debit made to the old insurer.

If they find the new cover unsatisfactory, they can cancel it within 14 days and get a full refund.

12. Can Medical Card Holders Get Private Health Insurance?

Your employees can hold medical cards and receive private health insurance. When they visit their GP or get admitted to a hospital, they can decide whether to be considered a public or private patient.

13. Will Employees Get Covered Right Away?

If your employee is enrolling in health insurance for the first time in Ireland, they usually face a waiting period of up to 26 weeks before certain benefits become available.

Waiting periods may also apply for pre-existing conditions, maternity claims, and switching/upgrading plans. 

Read our Waiting Periods in Irish Health Insurance guide for a full breakdown.

14. Does Age Affect Employee Health Insurance Premiums?

The health insurance industry in Ireland follows the Lifetime Community Rating principle, which considers the age at which your employee first joined the private health insurance market — not their current age.

Here’s an overview of its guidelines:

• A loading charge will apply to the premium for anyone first obtaining health insurance after 34 or for anyone whose insurance lapses for 13 weeks or more when they're over 34.

• Group scheme members might have their premiums reduced by up to 10%.

• Children's premiums are 50% of the adult premium.

• Anyone aged 18-25 may receive a reduced premium.

• Retired members of restricted membership schemes may pay a reduced premium.

While group rates often pool costs, individual loadings may still influence your overall premium bill.

15. Do Health Insurers Cover Pre-Existing Conditions?

Insurers can’t refuse coverage due to health history, but waiting periods (up to 5 years) may apply to pre-existing conditions.

Communicate these rules to your staff so they know when pre-existing conditions are fully covered.

Support Your Team with Private Health Insurance in Ireland

A sustainable business thrives on a healthy, motivated workforce. 

Private health insurance in Ireland helps employers create a secure and supportive environment where employees can perform at their best. By prioritising well-being, you invest in your team and your company's success.

Make health benefits effortless — join Kota and offer your team comprehensive health insurance.