Dáil Éireann Debate, Tuesday - 1 March 2022
694. Deputy Catherine Murphy asked the Minister for Health if he and-or his officials have reviewed the health insurance levy with a view to reforming the way in which it is applied; and the amount paid to insurance companies from the risk equalisation premium credit annually since it was introduced. [11171/22]
View answerThe Deputy’s query relates to the stamp duty on health insurance contracts and the credits which are paid from the Risk Equalisation Scheme.
The Risk Equalisation Scheme undergoes a review annually by the Health Insurance Authority and any proposed changes are incorporated into the Health Insurance (Amendment) Bill. The Health Insurance Authority submits an annual review of the market which provides the Minister for Health with a recommendation as to the risk equalisation credits to be applied each year based on market trends. In the Health Insurance (Amendment) Act 2021, the amount of stamp duty on health insurance contracts was reduced as a surplus of €100 million had built up in the Risk Equalisation Fund due to lower hospital utilisation during the Covid-19 pandemic. It should be noted that the stamp duty on health insurance contracts does not accrue to the Exchequer but is prospectively calculated so that it will all be paid out as risk equalisation credits.
The operation of the Risk Equalisation Scheme is carefully considered by officials in my Department, and is approved as part of a negotiation process with the European Commission. As such, the parameters of the Risk Equalisation Scheme including the stamp duty and risk equalisation credits are kept under constant review.
I hope this information has answered the Deputy's query.
