Aviva are set to launch 5 new plans later this month in response to the Vhi’s Lifestage Choices designed for people at different stages of their life. Aviva intends to bridge the gap by offering plans that should appeal to people at different stages of their lives currently on level 2 plans (Semi Private Room in a Private Hospital), the type of plan that approximately 70% of the population are on.

These plans have been designed on foot of research carried out by Red C, commissioned by Aviva earlier this year. Among other things the findings suggested that many people were happy to carry an inpatient excess on their plans in exchange for a cheaper premium. Aside from the inpatient excess, another way in which Aviva have achieved this is by acting on an initiative made earlier in the year by Vhi, the reduction of cover for certain orthopaedic procedures in Private and Hi-Tech Hospitals. However in contrast to Vhi’s percentage reduction, Aviva have introduced a fixed co-payment of € 2,000 on 10 specific procedures. This essentially means that if faced with this procedure, the client pays a maximum of € 2,000 towards the cost thereby eliminating the variable monetary shortfall that Vhi’s 20% shortfall presents.

The key points of the plans are as follows:

Level 2 Complete Health

This is a Tracker plan for Plan B Options. It treats the Beacon Hospital as a Private Hospital offering full cover in the same way as B options. Essentially, this is Plan B options under another name and with a different insurer. However most importantly, it’s cheaper. This plan offers a family savings of € 194.34 per annum when compared with Vhi’s Plan B Options.*

This plan makes Plan B Options obsolete, although one could argue that Vhi saw to that when they increased the price by 45% earlier this year.

Level 2 Family Health

This is much like the Vhi’s Parents & Kids Plan with the € 2,000 co-payment for orthopaedic procedures in place of Vhi’s orthopaedic structure mentioned above. This plan offers a family savings of € 403.58 when compared with Vhi’s Parents & Kids Plan.*

Other features:

A) This plan raises the bar on all other existing plans in terms of maternity cover in private hospitals. Family Health offers a grant in aid of € 4,500 towards the cost of up to 3 nights in Mount Carmel Hospital. The current maximum available is € 4,000.

B) € 300 cash benefit for early discharge.

This plan is a great plan for maternity benefits and a must if you choose Mount Carmel.

Level 2 Family Health With Day To Day

As above with added outpatient benefits of up to € 30 per visit for up to 4 visits to G.P’s, Dentists, Physiotherapists and a range of other alternative practitioners and no day to day excess. This plan offers a family savings of € 81.32 when compared with Vhi’s Family Plan Plus Level 1.*

Very well priced plan with the added outpatient benefits that will no doubt be utilised by mums with young children.

Level 2 Health Excess

This plan carries an inpatient excess of € 125 per episode of care for a semi private room in a Private hospital. This plan offers a family savings of € 249.00 per annum when compared with Vhi’s One Plan Plus.*

Other features:

A) € 2,000 co-payment for orthopaedic procedures.

B) 90% cover & € 125 excess on High Tech cardiac cover.

Great savings if you don’t mind the excess.

Level 2 Health Excess With Day To Day

As above with the same outpatient benefits as described in the Family Health with day to day example. This plan offers savings of € 284.10 per annum when compared with Vhi’s First Plan Plus Level 1.*

Great value with potential for a moderate return on outpatient expenses.

Conclusion

While these plans are welcome in terms of what they achieve and their price, it brings the total amount of plans available to a whopping 217, further complicating the market and again highlighting the need for advice around these products and the market in general.

It will be interesting to see if other insurers react to these new options from Aviva.

Patrick Brennan

Director of Corporate Business

Irish Health Insurance

*Family savings based on a policy of 2 Adults and 2 Children

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