Why private health insurance got more expensive in 2025 — and what employers can do

Private medical insurance in Ireland had an expensive year. The Health Insurance Authority reported the average premium reached around €1,902, following an average increase of roughly 9% across 2025. The headline figure understates the experience of many policyholders: insurers repriced repeatedly through the year, and a number of popular individual and corporate plans rose well into double figures.

Repeated in-year increases

Rather than a single annual change, the main insurers adjusted prices multiple times. Several popular plans saw increases of 9–11% in a single round, and cumulative rises on some long-standing plans reached the mid-20s in percentage terms over a twelve-month window. Insurers attribute the pressure to rising claims costs after the pandemic, more expensive treatments and technologies, and an ageing population.

The tax-relief offset

It’s worth remembering that medical insurance premiums attract tax relief at source at 20%, applied automatically up to set limits (per adult and per child). Where an employer pays the premium, it is treated as a benefit in kind for the employee, with the tax relief still flowing through. This softens the headline cost but doesn’t remove it.

What employers can do

The single most effective habit is to review the scheme each year rather than auto-renew. Plan structures and pricing shift constantly, and the right cover for the money can change from one renewal to the next. Beyond that: match the plan to what staff actually use, consider corporate scheme design where headcount allows, and communicate clearly with employees so a premium rise doesn’t land as an unexplained shock.

A structured annual review is something we run for employers as a matter of course — often it’s where the easiest savings are found.