The Government's reported plans to force more people to drop their health insurance cover as part of the new personal insolvency process has been criticised by health insurer Laya Healthcare.

According to Laya, to bundle in private health insurance with other discretionary purchases like paying for satellite sports channels and going on foreign holidays is 'absurd and hugely misleading', as private health insurance was not a lifestyle luxury.

The company pointed out that while Health Minister James Reilly had recently expressed concern about the number of people giving up their health insurance, Justice Minister Alan Shatter was pushing through insolvency legislation that would force many people to give up their health cover.

Recent research showed that one in three young families are planning to drop their health cover this year.

An irishhealth.com readers' poll this week showed that two out of five people are planning to give up their health insurance completely, while 37% are planning to move to cheaper health insurance plans.

Many planning to give up health insurance