Thursday, 24 October 2013

Questions (56)

Michael Healy-Rae

Question:

56. Deputy Michael Healy-Rae asked the Minister for Finance if persons paying more than €800 for a private health plan will see a price rise following on from the recent changes announced in budget 2014; and if he will make a statement on the matter. [45418/13]

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Written answers (Question to Finance)

The position is that from 16 October 2013, tax relief for gross medical insurance premiums will be restricted to the first €1,000 per adult and the first €500 per child insured. Some insurers currently quote prices that are net of tax relief at source, i.e. the tax relief available is deducted from the gross premium to leave a net payable amount. Ultimately, pricing of insurance premiums is a matter for insurers. Any portion of premium paid in excess of the new ceilings will no longer qualify for tax relief.

The new ceilings will ensure some continuing support via the tax system for those who purchase medical insurance policies, while reducing Exchequer exposure to more expensive policies.