Lifetime Community Rating (LCR) is being introduced to encourage people to take out private health insurance at a younger age. Encouraging more people to join the market at younger ages helps spread the costs of older and less healthy people across the market, helping to support affordable premiums for all.
The introduction of LCR is one of a suite of measures which I announced in November 2014 to address the rising health insurance premiums and stabilise the private health insurance market in the interests of consumers. Other measures introduced include a reduction in stamp duty, a reduction in the Health Insurance Authority levy and the introduction of 'Young Adult' rates of premium from 1 May 2015, based on a sliding scale of maximum chargeable rates up to age 26. Young adult rates will ensure the phasing-in of full adult rates and ease the effect of the dramatic price increase experienced when student rates no longer apply. The package of measures I announced in November also includes key recommendations set out in the two Pat McLoughlin reports on Private Health Insurance costs and builds on Budget 2015 which included a freeze on hospital bed charges and no decrease in the relievable amount for tax relief purposes. Taken together, these measures are intended to help control premium inflation and to create a sustainable market where health insurance is affordable for as many people as possible.
There are a broad range of plans available in the health insurance market, providing varying levels of cover from basic to comprehensive level. This facilitates consumer choice when purchasing health insurance and consumers should actively seek out plans which offer the most suitable level of cover, and which provide the greatest value for money, for their individual needs. I would encourage individuals to carefully review their private health insurance requirements when taking out, or renewing, a health insurance contract. Many customers can make savings on their health insurance premiums by reviewing the level of cover required to meet their needs. The Health Insurance Authority provides information to consumers in this regard and may be contacted at Lo-call 1850 929166 or at www.hia.ie.
