Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In his Budget Statement last week the Minister for Finance announced that he was cutting tax relief on what he termed "gold-plated" insurance policies, while not affecting the majority of individuals who avail of more standard levels of medical cover. Later that evening the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, contradicted the Minister for Finance when he confirmed that the policy change would affect approximately 500,000 insurance holders. In the hours after that the real and full story emerged, that the removal of the tax credits will impact on people with a basic level of health insurance. Contrary to what Minister for Finance said, approximately 1.2 million people will be affected by this decision. The VHI has confirmed that only 10 of its 93 policies will not be affected. Insurance Ireland has said that the minimal additional cost will be €100 to basic policyholders and up to €360 per family.

This will result in more families with children, and particularly older people, bearing a heavy burden for private health insurance. It will lead to more people leaving private health insurance. It is instructive that approximately 134,000 people under the age of 60 left private health insurance between 2011 and 2012, while approximately 23,000 over 60 have joined. We need balance in the market and this is not sustainable. "The centre cannot hold" in health insurance. It is becoming unaffordable for many families and for many senior citizens.

Will the Taoiseach accept that the Budget Statement by the Minister for Finance was misleading and false because this measure will affect the majority of those who have health insurance? Will he accept that it will be a particular burden on older people and on families with children, given the cost involved? Will the Taoiseach indicate to the House that he will use the forthcoming Finance Bill to change this measure to ensure that the burden that is about to fall on people will not fall?

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