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Tax Reliefs Availability

Dáil Éireann Debate, Wednesday - 26 September 2012

Wednesday, 26 September 2012

Ceisteanna (56, 57)

Richard Boyd Barrett

Ceist:

56. Deputy Richard Boyd Barrett asked the Minister for Finance the cost of the tax break for private medical insurance; and if he will make a statement on the matter. [40934/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

57. Deputy Richard Boyd Barrett asked the Minister for Finance the cost of the tax break for private medical insurance according to band A, B and C in VHI and equivalent bands in all private medical insurance companies in the state; and if he will make a statement on the matter. [40935/12]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 56 and 57 together.

I am informed by the Revenue Commissioners, who are responsible for the administration of tax relief at source for private medical insurance, that there are two types of private health insurers operating in the State, namely ‘Open Membership Insurers’ and ‘Restricted Membership Insurers’. Open membership insurers can provide insurance to all individuals on request while restricted membership insurers only provide insurance to members of specific organisations. Of the 13 private health insurers operating in Ireland, five are open membership and eight are restricted membership.

The cost of the tax relief to 31 August this year was €601 million, comprising €305 million in medical insurance relief and €296 million in age related tax credits. The age related credit is only available to clients of open membership insurers.

The age related credit is part of the current interim scheme of risk equalization in the health insurance market. The credit is funded by a Stamp Duty, the health insurance levy. The scheme is intended to be Exchequer neutral. The age related credit is due to be phased out at the end of 2012, to be replaced by credits under a permanent risk equalization scheme, which will also be funded by the health insurance levy.

Revenue does not require a breakdown of costs by band for its administration of the scheme and therefore is not in a position to provide figures broken down according to the various policy bands .

Barr
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