Dáil Éireann Debate, Wednesday - 15 April 2015
616. Deputy Michael McGrath asked the Minister for Health if he will address concerns that have been raised in correspondence by a person (details supplied) in County Cork regarding the operation of the Health Insurance (Amendment) Act 2014; and if he will make a statement on the matter. [14762/15]
View answerThe introduction of Lifetime Community Rating (LCR) for the private health insurance market is provided by regulations signed on the 7 July 2014. I wish to clarify that LCR relates solely to the current health insurance market, in which context the purchase of health insurance is optional, and the measure should not be misinterpreted as a form of compulsory insurance.
LCR is being introduced to encourage people to take out private health insurance at a younger age. Encouraging more people to join the market at younger ages helps spread the costs of older and less healthy people across the market, helping to support affordable premiums for all. The regulations provide for a grace period up until 30 April 2015, during which time as many people as want to can take out health insurance without incurring loadings. From 1 May 2015, late entry loadings will be applied to those who join the private health insurance market at age 35 or over, set at 2% per year for each year over the age of 34, up to a maximum loading of 70% at age 69 and over. If an individual is resident in the State during the grace period, but chooses to wait and to take out health insurance at a date later than 30 April 2015, then the individual may incur a loading on their premium (depending on the specific circumstances regarding age and periods of previous health insurance cover). Individuals are therefore encouraged to join the market at younger ages, and in doing so, will help spread the costs of older and less healthy people across the market, helping to support affordable premiums for all.
There are exemptions available for people who previously had health insurance but cancelled it. A credited period can apply for any periods of inpatient cover when a full adult premium is paid in respect of anyone, including spouses and dependant students. In addition, a credited period (in total not exceeding 3 years) is also available for individuals who previously had health insurance but relinquished cover since 1 January 2008 due to unemployment. In such cases, the level of loading will then be reduced by the relevant credited period(s).
