Small Business Health Insurance Ireland 2025: Benefits, Plans

Offering private health insurance isn’t mandatory in Ireland.

However, it can be a powerful tool for you, as a small business owner, to attract and retain top talent.

Let’s discuss why small businesses should offer health insurance and what you should consider when choosing it. We’ll also highlight how Kota can be the right choice for your small business health insurance needs.

Just looking for a small business health insurance solution?

Explore Kota’s Health Insurance Solution.

Further Reading

• Explore how Ireland’s upcoming Auto-Enrolment Pension Scheme can affect your small business.
• Find out why you should offer Private Health Insurance to your employees in Ireland.
• Help your employees secure their financial future by setting up an Irish Occupational Pension Scheme.

4 Reasons Small Businesses Should Offer Health Insurance To Employees

Private medical insurance offers several advantages for small business owners, such as:

• It enhances employee well-being and satisfaction
• It reduces lost productivity
• It improves employee retention
• It helps you gain an edge over your competitors

A survey of 15,000 small private firms in the US found that firms offering health insurance have better productivity, retention and profitability.

Let's discuss each benefit in detail:

1. Support Employee Well-being and Satisfaction

Offering private medical insurance in your employee benefits package shows that you value your employees.

Now, it’s more than just caring for your employees when they’re sick.

Many private health insurance plans offer ongoing benefits to continuously support employees’ health and wellness. These include maternity benefits, mental health support, and dental care.

Moreover, offering private health insurance can boost employee satisfaction.

When your employees feel satisfied, they’ll be more motivated and perform at higher levels, contributing to your company’s growth.

2. Reduce Lost Productivity

If your employees have private health insurance, they gain faster access to medical resources, which can lead to:

• Reduced workplace absenteeism: Faster access to medical care allows your employees to address health issues sooner, potentially shortening recovery times and minimizing days off. Did you know that approximately 11 million workdays are lost annually in Ireland due to absences, costing the economy €1.5 billion?

• More efficient workplaces: Public healthcare systems often face long waiting lists, meaning employees may delay seeking treatment until health issues become severe. Private health insurance can reduce this delay, enabling quicker treatment and helping employees return to work sooner.

3. Improve Your Employee Retention

Private health insurance should be part of your employee retention strategy because it contributes significantly to a healthy workforce.

It also fosters employee loyalty, which promotes employee retention. This is critical for small businesses because of high turnover costs.

What do we mean?

Recruiting and training new employees involves a lot of effort and money.

Moreover, finding employees who are the right fit for your small business may take time. That's why you must prioritise employee retention.

A healthy workforce contributes to a lower employee turnover, saving you recruitment and labour costs.

4. Gain an Edge Over Your Competitors

Providing private healthcare coverage to your employees can make your company more attractive to potential employees.

This is particularly important for a small business in a competitive employment market.

Why?

Skilled and experienced professionals typically prefer companies that offer various employee benefits, which they perceive as offering more job stability.

According to a 2024 study, healthcare benefits continue to be a top priority for job seekers, with 64% expressing a preference for employers who offer it.

Join Kota to easily manage and provide health insurance to your employees.

What Small Businesses Should Consider When Choosing Health Insurance

Remember these three key points when choosing private health insurance for your Irish small business:

• Consider your business needs
• Compare health insurance options
• Review plans annually

1. Consider Your Business Needs

As a small business owner, ask yourself:

• What level of cover do our employees need?

• Do we want basic health insurance coverage? Or are we willing to pay more for private hospital care, mental well-being benefits, and dental coverage?

• Are we looking for insurance for employees only, or do they require dependent coverage for their family members too?

• Should we offer employees a fixed plan or let them choose from pre-selected plans?

• How long should new employees have to wait before joining the scheme?

• How much are we willing to pay towards health insurance costs?

Once you’ve answered these questions, factor in your budget.

These are the health insurance plans available for various budgets:

• Company Paid: Your company will pay for your employees’ health coverage.

• Partially Company Paid: Your company can share the cost of health care insurance with the employee. Since employees have to share the cost of the insurance premium, companies make these schemes voluntary.

• Advice Only: Your company can negotiate a health plan package that employees can choose to join and pay for themselves. Typically, with this option, employees get a discretionary discount. So they benefit from a competitively priced plan without your company paying for it.

Once you’ve established your preferred coverage options and what type of plan would suit your company’s budget, you can start evaluating and comparing plans.

But look:

When you purchase a group health insurance plan from traditional brokers or service providers, you’ll have to offer it to your entire team.

This might not seem like a problem, but you might be overpaying for benefits.

For instance, a 21-year-old employee might not have the same health insurance needs as a 40-year-old team member. Paying for the same benefits for both could mean you’re just spending unnecessarily.

That’s where a platform like Kota can help your small business.

Kota lets you set a contribution for employees, and they get to pick the health packages they want. Employees get the flexibility and you don’t have to worry about benefits management. Sounds like a win-win!

2. Compare Health Insurance Options

Each health insurance plan offers various levels of coverage, benefits, and premiums.

The right plan for your business will depend on your firm’s requirements (such as the number of employees), employee needs, and budget.

What benefits can you expect from private health insurance plans in Ireland?

Some of the services covered by private health insurance plans include:

• Inpatient services: Cover general hospital accommodation, hospice facilities, mental health, and A&E (accident and emergency) overnight stays.

• Outpatient services: Include day-case surgery and hospital treatment that doesn’t require an overnight stay.

• General medical services: May cover emergency or non-emergency dental and optical care.

• Online GP services: Give your employees access to a GP via their phone, laptop, or personal computer (PC). Prescription costs are generally not covered.

• Complementary therapies: Health care costs may be partially covered for therapies such as osteopathy, acupuncture, and homoeopathy.

• Allied health services: Cover physiotherapy, chiropody, speech therapy, occupational therapy, and psychiatric services.

• Consultation fees: Include referrals from your employee’s GP and a second opinion.

• Medical tests and scans: Any medical tests or screenings may be partially covered.

• Maternity benefits: Contributions towards scans, antenatal classes, and consultation costs usually fall under maternity benefits.

3. Review Plans Annually

Review your choices regularly — when you receive your renewal notice from the insurance company.

Why review your health insurance plans?

Maybe you want to replace rarely used benefits with those more valuable to your team.

You could also change your insurance provider if you find other providers with better coverage.

For example, you may want to switch from Laya Healthcare to Irish Life Health for greater benefits — Kota can help you out here!

Flexible & Affordable Small Business Health Insurance Plans with Kota

Searching for the right small business health insurance partner?

Look no further than Kota.

What Is Kota?

Kota is a modern benefits platform that simplifies employee health insurance management.

We partner with Irish Life Health to provide comprehensive healthcare plans for your employees in Ireland. You set a budget, and your employees can choose from available plans, picking the cover that best suits them.

It’s a flexible and affordable way for small businesses to offer health benefits while keeping control over costs.

Why Choose Kota for Your Small Business Health Insurance?

Here’s why you and your team will love Kota:

• Simplified Benefits Management: Access quotes, sync with your HRIS and streamline admin tasks effortlessly.

• Budget Control: Set a budget or pick a plan, and your employees select coverage that fits their needs.

• Quick Setup: Set your contributions and get your team covered in minutes, not weeks.

• All-in-One Platform: Real-time enrolment and management of health benefits in a unified platform.

• Expense Control: Manage multiple benefit types across countries and entities.

• Seamless Integration: Sync your HRIS for automated updates from employee records to payroll. Kota integrates with leading platforms like Personio, BambooHR and more.

• Flexibility: Employees can choose benefits that match their needs.

• Employee-Friendly: A user-friendly app puts employees in control of their benefits.

• Affordable pricing: Flat pricing of €9.00/month per active employee — in addition to your contributions to employee benefits. No initial fees, minimums or lengthy contracts!

See how much you can save with Kota.

What Health Insurance Plans Does Kota Offer in Ireland?

We offer various Irish Life Health plans such as:

• Kick-Off Plan ILH - starts from €63.55/mo*

• BeneFit - starts from €114.69/mo*

• 4D Health 1 - €137.42/mo*

• Health Guide 2 - €139.84/mo*

• Horizon 2 - €148.42/mo*

*Estimated prices, excluding TRS. Prices may vary based on employee age and other factors. Prices are subject to change.

Check out the complete list of plans and coverage here.

How Does Kota Work?

Just follow these four simple steps to set up your small business health insurance scheme in no time:

• Create your account and add your staff.

• Select the packages you’d like to offer your team.

• Team members join the app — where they can create and manage their benefits with a few taps.

• You can manage your plan and billing directly within the platform.

You can sync the HR tools you already use to add your team members. Kota will separate them by region and help you set up contributions.

Dublin-based Kota is a Tied Intermediary of Tailored Finance Limited for Insurance and Pensions and is regulated by the Central Bank of Ireland.

13 FAQs About Small Business Health Insurance Ireland

Still have questions on small business health insurance?

We got you covered.

1. What Is Health Insurance?

Health insurance is an agreement in which an insurance company pays for some or all of your employees' medical expenses in exchange for a payment (also called the premium).

A health insurance plan covers hospital accommodation costs and offers faster access to health services and treatment.

2. Are There Different Types of Health Insurance?

There are three main types of health insurance plans, varying in comprehensiveness:

• Inpatient Hospital Cover: This plan covers services your employees receive while admitted to a hospital — whether they stay overnight or for the day. It includes the total or partial payment of costs associated with accommodation, tests, surgery, etc. Some insurance plans cover a semi-private room in a public hospital, while others pay for a private room in a private hospital.

• Cash Benefit: A cash plan typically offers fixed reimbursement for various medical treatments. But it excludes reimbursement for inpatient costs.

• Outpatient Only or Primary Cover: This plan covers the treatment your employees receive from a healthcare provider when they aren’t admitted to the hospital. It includes online general practitioner (GP) consultations, emergency dental care, emergency room treatment, physiotherapist treatments, and so on. Limited outpatient plans usually only cover part of your staff’s expenses. The portion covered is referred to as the ‘allowable expense,’ and the amount may vary from plan to plan. For example, a GP visit may cost €40, but the allowable expense may be only €10. In this case, your employee would only be able to claim the €10.

Individuals can take the inpatient hospital cover and outpatient cover separately.

However, some health insurance companies offer plans with both inpatient and outpatient coverage. Certain policies also cover the cost of doctor visits and alternative treatments like acupuncture, osteopathy, etc.

3. How Can I Save Money on a Small Business Health Insurance Plan?

As an employer, you can reduce the cost of your small business health insurance plan by:

• Comparing Various Plans: Compare group health insurance options that offer similar coverage at a lower price point. Some plans are designed specifically for small businesses and offer competitive rates while maintaining essential benefits.

• Opting for Excess Payments: Choosing a plan with an excess (the amount paid when making a claim) can lower monthly premiums. This trade-off can reduce upfront costs while still providing valuable coverage for your employees.

• Adjusting to a Lower Tier Plan: If your current plan exceeds your business's needs, consider downgrading to a more basic coverage level to save on premiums while still offering essential health benefits.

4. Can My Employees Claim Tax Credits on Health Insurance Premiums?

If you provide private health insurance for your employees, they may be eligible for a tax credit under the Tax Relief at Source (TRS) system.

Read about the TRS system here.

5. Does Health Insurance Cover Hearing Aids and Surgical Appliances?

Your health insurance policy may cover hearing aids and surgical appliances for your employees.

However, coverage can vary — some medical appliances may be fully covered, while others are only partially reimbursed. It's best to verify this directly with your insurer, as most providers can supply a specified list of covered appliances on request.

6. Does Health Insurance Cover Overseas Travel?

Most health insurance plans include coverage for medical emergencies abroad, which can be valuable for your employees who travel for work or leisure.

If your team frequently travels for business or works abroad, consider opting for a more comprehensive plan with tailored travel insurance to ensure they have proper medical support wherever they are.

7. Do My Employees Need Private Health Insurance for Maternity Services?

Your employees may not need private health insurance for maternity services since the public maternity and infant care scheme in Ireland provides essential care for all expectant mothers, including:

• GP and hospital care during pregnancy.
• Free inpatient, outpatient, and emergency care related to maternity services.

However, private health insurance can offer an enhanced maternity experience, such as:

• Access to a chosen obstetrician throughout pregnancy and birth.
• The option for a private room during the hospital stay.

8. How Can I Switch My Small Business Health Insurance Plan?

You can switch your small business health insurance plan anytime by notifying your insurance provider in writing.

With Kota, you can let us know via chat or email, and we’ll tell you how to proceed.

Things to keep in mind when switching:

• You may need to pay penalties or cancellation fees, depending on your provider's terms.

• Some insurers may require you to pay the government health insurance levy upfront if switching mid-term.

• There could be a waiting period before your staff can access the full benefits under the new plan.

Switching plans can help you secure better value while ensuring your team remains well-covered.

9. Why Do People Change Health Insurance Plans?

There are many reasons people change health insurance providers, such as:

• When people go through life changes or make plans for the future, such as planning a family, becoming first-time parents, etc.

• When someone requires extra precautions against unexpected ill health or pre-existing conditions.

• If someone’s health changes and the existing plan is no longer sufficient.

• When people are looking to save money and maybe aren’t using all their benefits, they consider downgrading their plan.

• If someone is looking for a better value cover, a more comprehensive cover, or becomes dissatisfied with their existing cover.

Moreover, some people may have realised the need for additional cover following the COVID-19 pandemic.

10. What Should I Do When Switching Health Insurance Providers?

When changing your small business health insurance plan, consider these steps:

• Review Policy Documents: Carefully read the new policy details.

• Clarify Benefits: Reach out to your new insurer for any clarifications.

• Notify Your Old Provider: Cancel your old plan in writing and provide notice in advance.

• Update Payment Details: Cancel direct debits with your old provider and confirm the cancellation with your bank.

What happens if you change your mind after switching?

All insurers must provide a 14-day cooling-off period from the contract's start. So during this time, you can cancel and receive a full refund.

However, if you make a claim during the cooling-off period, you may not receive a full refund, as the insurance company will need to recover any benefits it may have paid out.

The good news?

If you switch to a Kota company plan, you don’t have to pay any cancellation fees!

Read your policy’s terms and conditions carefully for more information.

11. What is a Restricted Membership Scheme?

These health insurance schemes are available only to specific occupational groups. For example, a plan that’s only open to health workers.

Ireland's four leading private health insurance providers operate under the open membership principle.

These providers are open to employees in all industries:

• Irish Life Health

• Laya Healthcare

• VHI Healthcare

• HSF Health Plan

12. How Are Health Insurance Providers Regulated?

The Central Bank of Ireland financially regulates all health insurance providers and life insurers. The Health Insurance Authority legally and statutorily regulates them.

Health insurance providers must display a registered address on their website.

13. What is Lifetime Community Rating?

Lifetime community rating is a system where the premium (that individuals pay for health insurance) increases with the age they enter the private health insurance market.

Since May 1st, 2015, individuals have to pay a loading charge if they are over 35 years old and haven’t had a continuing healthcare plan. For every year over 35, they have to pay a loading amount of 2%, but it’s capped at 10%.

Ready to Manage Your Small Business Health Insurance With Kota?

Private health insurance can be a game-changer for your small business.

But to maximise your ROI, you need a solution that benefits your employees and fits your budget and business operations.

Kota ticks all these boxes! Join today to manage your team’s health insurance easily!