Written answers

Tuesday, 23 January 2018

Photo of Margaret Murphy O'MahonyMargaret Murphy O'Mahony (Cork South West, Fianna Fail)
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301. To ask the Minister for Health his plans to further review health insurance policies in circumstances in which certain policies carry a Government levy of almost 50% of the overall cost of the premium; and if he will make a statement on the matter. [2900/18]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The purpose of the Community Rating Levy is to ensure that everyone in Ireland pays the same amount of money for the same level of health insurance coverage, regardless of their age or status. Older and less healthy people pay the same price as younger and healthier people. In a risk-rated private health insurance market, older and sicker people seeking health insurance would pay much more than others.

Our system of community rating is supported by a risk equalisation scheme. Under our scheme, credits are paid to all insurers for their older and sicker members - these credits are funded directly by a levy on all health insurance contracts written. The scheme redistributes funds between insurers to meet some of the additional cost of insuring older and sicker members. By sharing the cost of insurance this way, we can ensure that older people are treated fairly.

From 1 April 2018, the levy on advanced policies (which represents 90% of the market) will be €444 for an adult, unchanged from last year. The levy on non-advanced policies, those offering less comprehensive coverage for customers, will be €177 for an adult, which is a reduction of €45 from last year. The current average premium paid is €1,188 (as of 30 June 2017).

The price of each premium is a commercial decision by health insurers, who decide how much they wish to charge for the level of coverage in each health insurance contract, taking account of a range of factors in addition to the amount of levy payable. Without the levy, the cost of health insurance for older and sicker members of the insured population would be in excess of current premium prices.

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