Peter Cleere (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

539. To ask the Minister for Finance if he will assess the estimated full-year cost of reducing the tax relief available for private health insurance premiums from its current level to a new, reduced level to support the public, as part of a broader effort to make health insurance more affordable; and if he will make a statement on the matter. [46126/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

Following clarification with the Deputy, I understand he wishes to ask if, for the reasons stated in his question, consideration will be given to increasing the tax relief for private health insurance premiums.

Section 470 of the Taxes Consolidation Act ("TCA 1997") provides for tax relief in respect of payments made to authorised insurers under relevant contracts in respect of medical insurance and dental insurance.

Income tax relief is granted up to the standard rate of income tax (currently 20%), subject to certain limitations outlined below, on the amount of the premium, that covers benefits which are the reimbursement or discharge of health expenses within the meaning of section 469 TCA 1997 (health expenses tax relief).

The amount qualifying for tax relief is limited;

• in the case of an adult, to the lesser of the eligible premium paid or €1,000 per annum, and,

• in the case of a child, to the lesser of the eligible premium paid or €500 per annum.

A child for all such policies is a child under 21 years of age in respect of whom a child premium has been paid.

The current ceilings ensure a level of continuing support via the tax system for those who purchase health insurance policies, while reducing Exchequer exposure to more expensive policies.

The relief is generally provided at source, which ensures that individuals on lower incomes can receive the full benefit of the available relief.

I would note that the health insurance tax relief is a longstanding and broadly utilised relief which is a considerable cost to the Exchequer. In 2022, the cost of the health insurance relief was €405.2 million, with 1,383,260 claims.

Finally, and as the Deputy will appreciate, decisions regarding taxation measures are normally made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.