Written answers

Tuesday, 11 July 2017

Department of Health

Health Insurance Community Rating

Photo of Eamon ScanlonEamon Scanlon (Sligo-Leitrim, Fianna Fail)
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437. To ask the Minister for Health his plans to reduce Government levies for private health premiums; and if he will make a statement on the matter. [32577/17]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Our community rated health insurance market is supported by a Risk Equalisation Scheme, which in turn is funded by a community rating levy payable by insurers on all health insurance policies written. All money raised by the imposition of these levies is paid back to insurers in the form of credits, with the particular objective of keeping health insurance more affordable for older and less healthy citizens. The community rating levy does not contribute to general Exchequer funding, rather it is used specifically to redistribute funds between insurers to meet some of the additional costs of insuring older members.

Each year, the independent Health Insurance Authority (HIA) carries out an evaluation of the market and recommends the level of credits that should apply the following year, taking into account factors such as the changing demographic profile of the insured population and other market developments. The HIA report will be submitted to my Department in October, to inform the level of risk equalisation credits, and corresponding stamp duties required to fund those credits, next year.

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