Catherine Byrne (Dublin South Central, Fine Gael)
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109. To ask the Minister for Health the reason for the 24 April 2015 deadline for those over 34 years of age to take out private health insurance before a higher premium is applied; the way this will work in the context of universal health insurance; and if he will make a statement on the matter. [13510/15]

Leo Varadkar (Dublin West, Fine Gael)
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Community rating, reflecting the principle of intergenerational solidarity, is a fundamental cornerstone of the Irish health insurance market. Under community rating, the level of risk that a particular consumer poses to an insurer does not directly affect the premium paid. Premiums for younger or healthier lives are typically higher than their expected claims would require, whereas for older or less healthy lives, premiums are typically lower than the expected claims would require.

Community-rated markets depend on a continuing entry of younger people, to help keep premium prices down for everybody. Lifetime Community Rating is being introduced to encourage people to take out private health insurance at a younger age, thereby helping to spread the costs of older and less healthy people across the market, helping to support affordable premiums for all. There is a nine month grace period, which expires on 30 April 2015, during which time as many people as want to can take out health insurance without incurring loadings. From 1 May 2015, late entry loadings will be applied to those who join the private health insurance market at age 35 or over, set at 2% per year for each year over the age of 34, up to a a maximum loading of 70% at age 69 and over. There are exemptions available for people who previously had health insurance but cancelled it. A credited period can apply for any periods of inpatient cover when a full adult premium is paid in respect of anyone, including spouses and dependant students. In addition, a credited period (in total not exceeding 3 years) is also available for individuals who previously had health insurance but relinquished cover since 1 January 2008 due to unemployment. In such cases, the level of loading will then be reduced by the relevant credited period(s).

LCR relates solely to the current voluntary health insurance market and any loadings that apply after the 1 May 2015 will apply in subsequent years, until Universal Health Insurance is in place.