Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

54. To ask the Minister for Finance if he will set out in tabular form the tax expenditure related to private medical insurance for each year from 2005 to 2013; the projected cost in 2014; and if he will make a statement on the matter. [11123/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia from 2005 to 2013 and the estimated cost for 2014 are set out in the table below.

The figures in the second column do not include costs to the Exchequer of age-related tax relief at source, which was established by the Health Insurance (Miscellaneous Provisions) Act 2009. Those costs are shown separately in the third column of the table. The cost of the age-related tax credit for years 2009 to 2012 inclusive is offset by a stamp duty on health insurance policies. The age-related tax credit and stamp duty were part of an interim scheme of risk equalisation, which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be revenue neutral over its duration. This interim scheme expired on 31 December 2012 and was replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the Health Insurance (Amendment) Act 2012. Risk equalisation credits are not given through the tax system effective from 1 January 2013.

The estimated cost for 2014 includes the approximated saving from the reduction in relief announced in Budget 2014.