Lucinda Creighton (Dublin South East, Independent)
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1155. To ask the Minister for Health if he will provide further details on the figures regarding the health insurance tax relief changes impact that he referred to at the Health Committee meeting on 17 of October 2013 in response to questioning from this Deputy; if he favours a reversal of the Department for Finance's restriction on tax relief for health insurance; if the decision by the Department for Finance to restrict the tax relief on health insurance could lead to more persons forgoing their health insurance; if the changes to tax relief for health insurance will damage his efforts to encourage persons to take up private health insurance and introduce universal health insurance; and if he will make a statement on the matter. [46466/13]

James Reilly (Dublin North, Fine Gael)
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In Budget 2014, the Minister for Finance announced a cap on tax relief on premia for private health insurance, whereby tax relief for medical insurance premiums will be 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 tax relief at source provided to policy holders has been a significant subsidy to the actual cost of premiums charged by health insurers. I am pleased that the Minister for Finance did not remove tax relief in its entirety and has still allowed 20% tax relief on polices up to €1000 gross for adults and €500 for children.

It is also important to note that the measure is projected to save the Exchequer €94m in 2014 and €127m in a full year. Pricing of insurance premiums is a matter for insurers. In terms of potential increases in premia that might arise from this measure, it is up to each insurer to contain its own costs and to compete actively on the basis of price.

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, who will work with my Department and the insurers on a review process to give effect to real cost reductions in the private health insurance market. Work on this review process is progressing well and I expect to receive an initial report from the Chair very shortly.

I will continue to focus strongly 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.