In the world of health insurance, it's time to shake things up. Jim Dowdall, CEO of Level Health, believes there's a lot more to be done to revolutionize the market. And he's not alone in this quest.
Dowdall and his team, including chairman Oliver Tattan, CFO Stephen Loughman, and CCO Ruth Bailey, are veterans in the health insurance industry. With a combined experience of over 200 years, they're bringing a fresh and innovative approach to the table. But why the need for a reunion?
Well, it's a story of unfinished business. Despite the market doubling in size since their last venture, certain aspects remain unchanged. One of the most frustrating issues, according to Dowdall, is the subsidy model for older and higher-risk citizens. State-owned VHI, with its near-half market share, continues to benefit significantly from this model.
The risk equalization scheme (RES), in place for decades, aims to balance the risk profile of health insurers. However, Dowdall argues that the fixed rate levies penalize younger individuals seeking health insurance. He believes encouraging more young people to take out insurance would reduce costs across the board.
"We're not against risk equalization per se, but the current system is flawed," Dowdall asserts.
Level Health has filed a complaint with the European Commission, highlighting alleged breaches of EU law. They argue that the RES design and operation have prevented the full benefits of competition from reaching consumers.
"There should be more players in the market," Dowdall says. "The Health Insurance Authority and the Department of Health seem content with the status quo, but this isn't in the best interest of customers."
With VHI holding a 48.3% market share and Laya at 28.1%, Dowdall believes there's room for more competition. Level Health, with its 1% market share, aims to disrupt the market and encourage innovation.
"Private healthcare is not a peripheral part of the health system; it's integral to it," Dowdall emphasizes. He believes the government should recognize the role of private healthcare in alleviating the burden on the public system.
Dowdall's journey in health insurance began with a career in technology. From working with mainframes in the 1980s to leading startups, his experience is vast. He joined forces with Tattan and Loughman in 2003, and later with Bailey, to establish Vivas Health and GloHealth.
The decision to partner with Aviva for their latest venture, Level Health, was sparked by a chance encounter at a hurling match. Since its launch, Level Health has attracted 25,000 customers and generated over €30 million in premiums.
"We have big ambitions for the business," Dowdall says. "Our goal is to reach over €100 million in premiums in the next two years and €350 million three years after that."
As for Dowdall's future, he sees this as his last executive role. "I may continue to work here part-time, but I don't envision doing anything else after Level Health."
With their innovative plans, access to a wide network of partners, and market-leading telemedicine service, Level Health is set to make waves in the health insurance market.
Will they succeed in their mission to bring more competition and innovation? Only time will tell, but one thing's for sure: Jim Dowdall and his team are not ones to shy away from a challenge.
