Health Insurance Two simultaneous health insurance policies

[slith-zerikai]

If someone has two health insurance policies but only makes claims on one of them, is this any sort of breach of contract?

The situation:

I have a health insurance policy with company A which unfortunately does not cover me to the level I require (also found out after cool-off period).

I've been advised that cancelling this policy may trigger company A to charge me to recover the losses (but monthly premiums are waived).

After much arguing over phone and e-mail, it is clear to me that nothing can be done to un-do the damage done. I bought the wrong insurance product and I accept it is on me. Company A claims that they informed me accurately, and that I didn't look at the policy in detail, and that this is my fault. I've given up on trying to address this.

As it turns after doing some basic sums, even with such penalty, it is cheaper for me to change policies, so it is clear I must proceed.

But what if I don't cancel the existing policy and simply sign up to the second policy? I just won't be making any claims to company A, it wouldn't be worth my while anyway.

Am I getting into unnecessary trouble? I understand health insurance providers share data, so I am not that naive thinking that I can 'hide' something, nor am I trying to defraud or double-claim, just looking for the best option considering the circumstances while avoiding trouble.

 

[Savvy]

Edit: removed misinformation

 

[slith-zerikai]

I can only assume that you are not in Ireland as there is no penalty from cancelling a health insurance plans.

Hi,

I am in Ireland. I wasn't even allowed to cancel the health insurance plan right away, it had to go through an appeals process and when they decided I was not entitled to cancel my plan without a penalty (because they concluded I had not been mis-informed), I questioned about the euro amount of such penalty.

I had assumed it would be whichever amount was left in the year premium but apparently it is whatever losses they may have incurred in for any claims already made during the year... So they are stating there is a penalty from cancelling, namely anything they have covered during the year.

To be clear, nobody on the phone could actually confirm the amount. All they could say 'if applicable'.

 

[odyssey06]

Are you sure you will be actually covered under a new policy - usually there are waiting limits etc for existing conditions if you are just taking out health insurance for first time?
Have you explored switching mid contract to a different plan with same insurer?

Could there be implications for tax relief at source, as this is capped at a certain amount? You would need to inform the new insurer you have already claimed this in current year.

This page covers the cancellation process and possible charges - insurers can charge cancellation fees.
eg for LAYA it is: You will have to pay the full cost of the 12-month policy if you cancel mid-contract.
for VHI:
If you cancel your Vhi Healthcare policy mid-contract and you have had no claims, you will have to pay a cancellation charge. The cancellation charge consists of the health insurance levy calculated on a pro-rata (proportional) basis for each person on the policy based on the time left in the contract, along with a €50 administration fee for each policy that you are cancelling. If you cancel your Vhi Healthcare policy and you have had claims since your last renewal date, you will have to pay the full cost of the 12-month contract if you cancel mid-contract.

Cancelling and switching

In general, health insurance policies are 12-month contracts. All insurers must provide a 14-day cooling-off period from the commencement of the contract, during which time you may cancel and get a full refund. No claims will be paid in respect of these 14 days.

www.hia.ie

 

[slith-zerikai]

Are you sure you will be actually covered under a new policy - usually there are waiting limits etc for existing conditions if you are just taking out health insurance for first time?

Yes, I know this will be covered. Got it in writing.

Have you explored switching mid contract to a different plan with same insurer?

I may consider this but for this question, let's say no plan is suitable (I have developed a profound lack of trust towards this insurance company as they claimed the plan was like for like but now they deny it).

Could there be implications for tax relief at source, as this is capped at a certain amount? You would need to inform the new insurer you have already claimed this in current year.

Good point, will have to consider this with Revenue.

This page covers the cancellation process and possible charges - insurers can charge cancellation fees.
eg for LAYA it is: You will have to pay the full cost of the 12-month policy if you cancel mid-contract.
for VHI:
If you cancel your Vhi Healthcare policy mid-contract and you have had no claims, you will have to pay a cancellation charge. The cancellation charge consists of the health insurance levy calculated on a pro-rata (proportional) basis for each person on the policy based on the time left in the contract, along with a €50 administration fee for each policy that you are cancelling. If you cancel your Vhi Healthcare policy and you have had claims since your last renewal date, you will have to pay the full cost of the 12-month contract if you cancel mid-contract.

That information doesn't seem to be up to date. VHI says something different on the phone (basically that you have pay what you claimed so far if you have made any claims). The contract is even less clear, stating you simply cannot cancel the contract, end of story, which is a bit shocking.

Nobody on the phone could confirm to me what the fee for cancelling would be.

 

[odyssey06]

@slith-zerikai Have you actually made any claims with the VHI under the policy already?

Then you seem to be in situation of paying the full premium for the year - or perhaps VHI are suggesting you merely pay the cost of the claim which may be lower?

If you have no claims, then you have to pay the pro-rata levy so you are looking at a cancellation charge of maybe a third of the cost of your premium + €50.
It may be less if you are over 60.
https://www.hibernianavivahealth.ie/help/your-price-explained/

Your situation is messy, that it might be worth a call to the Health Insurance Authority helpline (01) 406 0080

 

[slith-zerikai]

@slith-zerikai Have you actually made any claims with the VHI under the policy already?

I have made claims, so according to HIA it should be just the full premium. But VHI customer service stated that they do not 'do that' any more and instead they try to "recover their losses for claims made, if applicable". But they cannot define what 'if applicable' means and nobody can tell me what the cost of this would be.

Then you seem to be in situation of paying the full premium for the year - or perhaps VHI are suggesting you merely pay the cost of the claim which may be lower?

Cost of the claim is higher, still better than staying with them...

Your situation is messy, that it might be worth a call to the Health Insurance Authority helpline (01) 406 0080

Yes, I agree it is. I'll be contacting the HIA today.