Dáil Éireann Debate, Tuesday - 26 November 2013
340. Deputy Michael McGrath asked the Minister for Social Protection the number of persons who have made a re-claim in respect of being incorrectly charged the health levy in 2009 and 2010; the number of claims which have been adjudicated in favour of the claimant; the number rejected and the number currently outstanding; and if she will make a statement on the matter. [50280/13]
View answer341. Deputy Michael McGrath asked the Minister for Social Protection the approximate maximum number of additional claims her Department could face in respect of persons being incorrectly charged the health levy in 2009 and 2010; and if she will make a statement on the matter. [50281/13]
View answer342. Deputy Michael McGrath asked the Minister for Social Protection the steps she will take to ensure that all persons who may be entitled to a refund for being incorrectly charged the health levy in 2009 and 2010 are made aware of this fact and facilitated in so far as possible in making their claim; and if she will make a statement on the matter. [50282/13]
View answer409. Deputy Richard Boyd Barrett asked the Minister for Social Protection further to the overcharging of the health contribution in 2009 and 2010, the number of persons who applied for a refund; the number who were given a refund; the total amount refunded; the number of persons still eligible for a refund; and the total amount of these refunds. [50724/13]
View answerI propose to take Questions Nos. 340 to 342, inclusive, and 409 together.
A person was liable to pay the health contribution where they earned in excess of €500 in any week. However, if over the course of the year their gross annual income was less than €26,000 a refund of the health contribution may be due. In order to confirm that a refund is due my Department must carry out a manual check to ensure that the correct rate of PRSI was applied over the course of the relevant tax year. It is not possible to identify the number of people who are entitled to a health contribution refund until this check is carried out.
To date my Department has received over 290,000 applications for health contribution refunds. The processing of these applications is up to date and has resulted in approximately 48% of applicants receiving refunds. The amount of health contribution refunded to date is approximately €46.2 million.
Applications for refunds must be made within four years of the end of the year that the contribution was paid. For example, you must apply for a refund of health contributions paid in 2009 by 31 December 2013. Any contributions paid prior to 1 January 2009 are outside the time limit for making a claim.
The position with regard to liability is that if a person earned more than €26,000 in 2009 and/or 2010 they were liable to pay the health contribution and are not due a refund. If a person earned less than €26,000 and never earned more than €500 in any one week they would not have been charged the health contribution and are not eligible for a refund. A person may be entitled to a refund of the health contribution if they have earned less than €26,000 in 2009 and/or 2010 and earned more than €500 in any particular week in those years.
Also employees who are Medical Card holders; recipients of social welfare widow's/widower's pension; one parent family payment; deserted wife's benefit, or certain EU pensions and payments, are exempt from the health element of the PRSI contribution (i.e. they are liable at the sub-class of contribution - A2, B2, C2, etc.). Refunds arise if the full contribution has been paid. The health contribution was included in the Universal Social Charge (USC) with effect from 1 January 2011 and no health contribution refunds arise after that date.
