Dáil Éireann Debate, Wednesday - 18 December 2013
36. Deputy Lucinda Creighton asked the Minister for Health his views on whether changes to tax relief for health insurance will disproportionately hit those over the age of 50; if he has considered any policy measures to offset this disproportionate impact on elderly peoples premiums; and if he will make a statement on the matter. [54122/13]
Amharc ar fhreagraIn Budget 2014, the Minister for Finance announced a cap on tax relief on premia for private health insurance. From 16 October 2013, tax relief for medical insurance premiums has been restricted to the first €1,000 per adult and the first €500 per child insured. Any portion of premium paid in excess of these ceilings will no longer qualify for tax relief. The measure is projected to save the Exchequer €94 m in 2014 and €127 m in a full year.
The new ceilings will ensure some continuing support via the tax system for those who purchase private medical insurance policies, while reducing Exchequer exposure to more expensive policies. This will affect some consumers, including those over the age of 50, depending on the cost of the policies that they purchase. While individuals can of course opt for less expensive policies and therefore avoid the impact of this measure, it is important that they fully understand the level of cover their policy provides.
Many consumers can make savings on their health insurance premiums by reviewing the level of cover to ensure that their needs are being met, without being over-insured. The Health Insurance Authority provides information to consumers regarding their rights and also on health insurance plans and benefits. The HIA's web-site, www.hia.ie, has a useful plan comparison tool which assists in finding suitable and competitive health insurance plans.
With regard to health insurance costs generally, I have consistently emphasised the vital need to address the rising cost of private health insurance and the necessity for all private health insurers to address their cost base aggressively. Last year, I established the Consultative Forum on Health Insurance to generate ideas to address health insurance costs. In June of this year, I appointed an independent Chairperson, Mr. Pat McLoughlin, to work with my Department and the insurers on a review process to give effect to real cost reductions in the private health insurance market. Mr. McLoughlin recently submitted his report under phase 1 of the review process and the contents are being examined by myself and the health insurers. The second phase of this review will commence immediately and will report within three months.
I will continue to focus on addressing costs in the private health insurance market, to keep insurance as affordable as possible for people who wish to avail of private health insurance. The Government's clear objective is for the health insurance market to remain as competitive and affordable as possible, as we move towards a new system of Universal Health Insurance.
