Written answers
Thursday, 9 March 2017
Department of Health
Health Insurance
Noel Grealish (Galway West, Independent)
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193. To ask the Minister for Health the details of the new Government policy and regulations which are provided by health insurers as an explanation of increased insurance costs for young adults between 18 to 25 years of age, despite most children of 18 years of age still being in full time education (details supplied); and if he will make a statement on the matter. [12531/17]
Simon Harris (Wicklow, Fine Gael)
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Up to 30 April 2015, insurers had discretion to offer discounted premium rates to full time dependent students of a policy holder up to age 23. In practice, discounts were confined to students aged 18-20 years, and a dramatic price increase of 100% or more usually arose when student rates no longer applied (usually on 21st birthday).
From 1 May 2015, 'young adult rates' based on a sliding scale of maximum chargeable rates up to age 26 applies, thereby ensuring the phasing-in of full adult rates and easing the effect of the dramatic price increase for all young people, not just student dependants of policy holders.
The table beneath shows the impact of phasing-in young adult rates at various price points.
Examples of Young Adult rates in Practice
Age | % of full adult rate | Full adult Premium €800 | Full adult Premium €1000 |
|---|---|---|---|
Age 18 to 20 | Up to 50% | (not more than) €400 | (not more than) €500 |
Age 21 | 51%-60% | €408 - €480 | €510 - €600 |
Age 22 | 61%-70% | €488 - €560 | €610 - €700 |
Age 23 | 71%-80% | €568 - €640 | €710 - €800 |
Age 24 | 81%-90% | €648 - €720 | €810 - €900 |
Age 25 | 91%-100% | €728 - €800 | €910 - €1,000 |
Age 26 | 100% | €800 | €1,000 |
Insurers retain discretion whether or not to provide young adult rates, although where an insurer chooses to provide young adult rates, they must provide the full range of rates within the specified bands. All insurers confirmed that they are offering young adult rates on the majority of their products. A sustainable community-rated market requires a constant influx of young healthy members to balance the older, sicker members. This new structure of premium rates was designed to retain young people in the market and expand the cohort eligible to avail of discounted rates. Following a decrease of 3,267 in 2014, the market has benefitted from an increase of 6,951 in 2015 and a further increase of 6,221 in 2016 in the age group 18-25.
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