Dáil Éireann Debate, Wednesday - 12 April 2017
279. Deputy Noel Rock asked the Minister for Health to outline his plans to adopt the proposal to phase out tax relief on health insurance; the measures he plans to adopt to offset the €600 increase that the average family would incur; and if he will make a statement on the matter. [18466/17]
View answerI understand from media reports that phasing out tax relief on Health Insurance may be under consideration by the Committee on Future Healthcare. It is important to note that the work of the Committee is on-going, its Report is not finalised and the Committee should be afforded the space to complete its work. While I do not wish to influence the Committee's deliberations, neither can I verify what might or might not form part of its Report.
However, as Minister for Health I would caution that making private health insurance less affordable for people by withdrawing tax relief without improving the public health system would only serve to increase reliance on services that are already under pressure and worsen standards for everyone. The cost to the Exchequer of providing Tax Relief on Health Insurance premia (€325 m in 2015) must be seen in the context of the overall premiums paid (circa €2462 m) and circa €2000 m claims paid during the same period. This includes income generated from the treatment of private patients in the public system. In addition, any unintended consequences such a policy change might have on the sustainability of our community rated PHI market, the sustainability of the health insurance industry and the future viability of private healthcare would required detailed and careful consideration. The phasing out of tax relief on health insurance premia is not something I as Minister for Health would support. However, decisions in relation to taxation policy are a matter for the Minister for Finance and the Office of the Revenue Commissioners, who would give careful consideration to all of the likely knock on consequences arising from such proposals before making a recommendation to Government.
