Dáil Éireann Debate, Tuesday - 22 October 2013
128. Deputy Billy Timmins asked the Minister for Finance in relation to the cap on the amount of premium on which tax relief is available on medical insurance introduced in the budget 2014, the number of persons impacted by this new measure including families and couples without children on their health insurance policies; and if he will make a statement on the matter. [44639/13]
View answer167. Deputy Róisín Shortall asked the Minister for Finance his estimate of the number of health insurance customers who will pay additional health insurance as a result of the budget announcement on tax relief on medical insurance. [44890/13]
View answerI propose to take Questions Nos. 128 and 167 together.
The position is that from 16 October 2013, tax relief for medical insurance premiums will be restricted to the first €1,000 per adult and the first €500 per child insured. Any portion of premium paid in excess of these ceiling will no longer qualify for tax relief. The new ceilings will ensure continuing support via the tax system for those who purchase standard policies, while reducing Exchequer exposure to more expensive policies.
I am advised by the Revenue Commissioners that it is estimated that up to 577,000 policy holders, which provide cover for 1.1 million individuals, may be affected by this measure. However, I should point out that many of these will only be affected marginally, depending on the cost of the policies that individuals purchase. In addition, individuals can of course opt for less expensive policies and therefore avoid the impact of this measure entirely.
