Written answers

Thursday, 18 May 2017

Department of Health

Health Insurance Levy

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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211. To ask the Minister for Health if the State takes a profit from the Revenue Commissioners’ collection of health insurance levies from health insurance companies; and if he will make a statement on the matter. [23704/17]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Risk equalisation is a mechanism designed to support the objective of a community-rated health insurance market, whereby all customers pay the same net premium (adjusted to reflect any loadings applicable under lifetime community rating) for the same health insurance product, irrespective of age, gender or health status. Under the risk equalisation scheme, credits are paid to insurers for their older and sicker members. These credits are funded directly by stamp duty levies on all health insurance contracts written. The scheme redistributes funds between insurers to meet some of the additional costs of insuring older and sicker members. The scheme is self-funding and exchequer neutral, neither a cost nor a benefit to the State.

The legislative basis for the levy is provided for in the Stamp Duties Consolidation Act 1999. The levy is collected by the Revenue Commissioners from insurers and all of the monies collected are paid over to the Risk Equalisation Fund administered by the independent regulator - the Health Insurance Authority. The Authority redistributes the monies back to the health insurance companies by way of credits in respect of older and sicker people. The scheme therefore protects community-rating by spreading the cost of insuring older and sicker people across the market and allows all people to continue to pay the same net amount for a given health insurance product.

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