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Health Insurance

Dáil Éireann Debate, Tuesday - 10 February 2015

Tuesday, 10 February 2015

Ceisteanna (231)

Billy Kelleher

Ceist:

231. Deputy Billy Kelleher asked the Minister for Finance the action his Department is taking in view of the provisions of the Health Insurance (Amendment) Act 2014 which allows insurers discretion to provide a discount to young adults in the age 18 to 25 age range, but which has apparently resulted in a discrepancy; the level of tax relief at source which needs to be applied to those persons who receive the discount; if his attention has been drawn to the fact that if a person is a student, dependent on the policy holder, under 23 years of age and in receipt of a student discount, that person's tax relief is capped at the child rate of a maximum of €100, but that student rates will disappear with the introduction of young persons' discounts, but tax legislation has not been amended to reflect this; if his attention has been further drawn to a technical issue (details supplied) relating to an apparent discrepancy in health insurance payment plans; the guidance his Department or the Revenue Commissioners have provided to insurers in this regard; if his attention has been drawn to the issue that is now causing concern as systems need to be changed to accommodate this change and with renewals-new business being able to be bought six weeks in advance, this means there is just over a month to resolve the problem; if his attention has been further drawn to the fact that it also leaves the insurers open to regulatory problems with the Central Bank of Ireland, as insurers may not be providing the correct net premium to customers and that notifications will need to be made to the Health Insurance Authority on what premiums are correct 30 days in advance of 1 May 2015 and it is again not clear what net premium is correct or whether the intention is that two 20 year olds are to be treated differently, based on whether they are students or not; and if he will make a statement on the matter. [5952/15]

Amharc ar fhreagra

Freagraí scríofa

I can assure the Deputy I am fully aware of the provisions in the Health Insurance (Amendment) Act 2014, relating to premiums for young adults, which are due to come into effect on 1 May 2015.

The Deputy will be aware that tax law follows general law and that the Health Insurance (Amendment) Act 2014, was signed into law on 25 December 2014, at which stage the last Finance Bill had already been passed by the Oireachtas.

My officials in consultation with the Revenue Commissioners are considering advice from the Attorney General's office in this matter, with a view to assessing the options available to me in advance of the next Finance Bill.

I am aware of the time constraints under which insurers must operate and I hope to be in a position to make an announcement in the matter very soon.

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