Irish Life to reduce taxes for health insurance customers

IRISH Life will reduce State taxes on health insurance plans for its customers.

his move can save a family around €100.

It comes because Laya Healthcare will reduce the cost of the year of its plans from April.

Last October, the Health Insurance Administration (HIA), said it was offering a one-time tax break on health insurance policies.

According to the regulator, the tax break will mean an annual saving of €43 per adult for most people with health insurance.

HIA says it expects the reduction to go directly to consumers, but so far Irish life is the only health insurer that has committed to making the cuts.

For lower tier plans that cover only public hospital treatments, the rate drops to €35 per adult.

The annual fee supports a community rating system that allows everyone, regardless of their health condition and other risk factors, to buy the same health insurance policy for the same price – This is called the balance of risks.

The HIA said the drop was the result of a surplus in the Equity Risk Fund due to lower claims during the Covid pandemic.

Irish Life Health says customers will get the benefit of tax relief on their plans for 12 months from the renewal date. The discount will take effect from April 1.

Irish Life Health CEO Gerard Davis claims further reductions in fees, and ultimately customers’ premiums, could be achieved if the Health Insurance Agency and Department of Health make changes to the plan risk balance that Irish Life Health recommends.

This will ensure greater fairness between customers of all health insurers, he said.

Dermot Goode of TotalHealthCover.ie says the tax cuts will save a family of two adults and two children between €92 and €116.

However, he said this comes against the backdrop of price increases from 2pc to 5pc from all three vendors last year.

Mr. Goode said.

Separately, Laya Healthcare is reducing the cost of five of its packages from April.

Assure Protect will reduce 38€ to 1,314€ for a family of two adults and two children.

The Signify plan, which includes public and private hospitals, will reduce the same family by €86, bringing the total cost down to €2,376.

Laya is also extending free coverage for the second and subsequent children under 18 as of April.

This offer will currently be available on six Laya packages.

Vhi has not announced any changes since April, but Mr. Goode said he was expecting some movement on its rate to be announced shortly after.

The broker warned: “Consumers need to be careful not to be fooled by these changes.”

He said the rate cut was welcome, but health inflation remained high, meaning they would expect premiums to continue rising year-on-year as they did last year.

https://www.independent.ie/business/personal-finance/health-insurance/irish-life-to-pass-on-levy-cut-to-health-insurance-customers-41394026.html Irish Life to reduce taxes for health insurance customers

Fry Electronics Team

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