More young families planning to drop health insurance

Almost one in three young families are planning on dropping their health insurance, according to a new survey.

The survey, by insurer laya, found that one in six families (17%) said that they cannot afford cover anymore, and 31% plan to drop their private cover.

Of those parents planning to drop out, the majority (66%) are young aged between 30-44 years.

Commenting on the findings, Dónal Clancy, managing sirector of laya healthcare said: "The research confirms our worst fears that the price spiral affecting private health insurance will force more people to drop their cover this year.

"Finding ways to incentivise people - especially the young and healthy - to take up private health cover will be critical if we are to transition successfully and seamlessly to the new Universal Healthcare system promised for 2016.

"The current system is unfair in that the majority of people on more basic plans are cross-subsidising those on the premium top-tier plans with all the frills.

"This is unjust and is fuelling a record market decline.

"Applying risk equalisation to a core, standard set of benefits would help stabilise the market and address the issue of fairness."

The online omnibus poll was carried out by SpongeIt research in March 2013 among a nationwide population sample of 501 parents with children who hold private medical insurance.

Last year alone, 64,000 people cancelled their health insurance.

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