It's set to cost a family with two children up to €450 euro extra per year
Laya Healthcare has announced a new price hike for its costumers.
It's understood that from the first of April the cost of all of the insurer's policies will increase by 5.9%.
The hike is set to cost a family with two children up to €450 euro extra per year.
Laya is blaming the rise on the significant and unsustainable increase in the cost of claims both in public and private hospitals.
They says it is "largely attributable to the Public Bed Re-designation Charges." They claim that it is costing insurers €200 million a year.
Under legislation passed last year, the levy in respect of products providing advanced cover will rise from €403 to €444 per adult and from €134 to €144 per child.
Dermot Goode, of totalhealthcover.ie, said these levy hikes would apply across 85% of plans.
Under the Public Bed Re-designation Charge, those with private health insurance are being charged up to €813 per night for a stay in a public bed.
This is 10 times more than the public patient charge for an equivalent public bed which is only €80 per night.
Mr Goode said it was imperative that private patients don't sign a form waiving their right to be treated as a public patient, if the hospital does not have the capacity to treat them as a private patient.
Laya managing director Dónal Clancy said every health insurance provider had been negatively impacted by the Public Beds Re-designation Charge.