Dáil Éireann Debate, Tuesday - 5 March 2024
609. Deputy Michael Healy-Rae asked the Minister for Health his views on a matter (details supplied) regarding the government levy on all private health insurance policies; and if he will make a statement on the matter. [10845/24]
View answerIreland has a community rated health insurance market. This is supported by the mechanism of the Risk Equalisation Scheme. Under the Risk Equalisation Scheme, funds are redistributed in the form of credits to compensate insurers for the additional cost of insuring older and sicker members. The credits are funded by stamp duty.
Section 125A of the Stamp Duties Consolidation Act 1999 provides for an annual levy on health insurers for each health insurance policy issued. There are 4 stamp duties based on age (child or adult) and type of product (advanced and non-advanced). The stamp duty is collected by Revenue and paid into the Risk Equalisation Fund, which is operated by the Health Insurance Authority. The Authority pays out credits to health insurers to compensate for the additional cost of insuring older and sicker members.
When formulating its report on Risk Equalisation Credits, and the stamp duty required to fund them, the Health Insurance Authority aims to strike a balance between keeping health insurance affordable for older, sicker consumers and maintaining the sustainability of the market by keeping younger, healthier consumers in it. The Health Insurance (Amendment) Act 2023 reduced the stamp duty levy:
• from €36 to €35 for non-advanced products for 17 years and under (decrease of €1);
• from €146 to €140 for advanced products for 17 years and under (decrease of €6);
• from €109 to €105 for non-advanced products for 18 years and older (decrease of €4); and
• from €438 to €420 for advanced products for 18 years and older (decrease of €18).
The rates approved use an anticipated surplus of €25m in the Risk Equalisation Fund to reduce the level of stamp duty which would otherwise be payable.
