Róisín Shortall (Dublin North West, Labour)
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Question 96: To ask the Minister for Health and Children the way, in relation to the recent announcement regarding the introduction of the community rating levy, this new measure will be implemented; and the way in which the tax credit will be applied in respect of those with incomes exempt from income tax. [43352/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The community rating levy announced by the Government as part of the interim solution to protect the policy of community rating in the private health insurance market will be charged to the health insurance companies. The companies concerned, those in the open market, will be required to pay an annual levy to the Revenue Commissioners in respect of each insured person. The levy will be remitted to the Exchequer where it will form part of the overall Exchequer funding. The measure will apply in the calendar years 2009 to 2011. For 2009 the levy will be charged on all adult insured lives at a level of €160 with a reduced rate, one-third of this amount (€53), for insured lives under age 18 — to reflect the fact that insurance premiums for under 18s are on average of the order of one third of the adult premium.

Currently those with incomes exempt from income tax who have health insurance cover benefit from the standard rate of relief given, as it is granted at source (TRS) in respect of all insured persons. The additional age related relief being granted to those aged 50 and over, will, in a similar manner, be granted at source in respect of each insured person. At present all insured people, irrespective of their tax status, are charged the same net premium. This will also apply under the proposed arrangements. Both the age-related private health insurance relief and the levy will be subject to annual review. The Health Insurance Acts will be amended to oblige health insurance companies to provide appropriate data to the Health Insurance Authority each year.