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Dublin: 8 °C Monday 24 November, 2014

Health insurance levy will cost customers “up to 15 per cent”

Already 250,000 people have cancelled policies and analysts don’t believe that new levy increases will change that.

Image: Jim Vallee via Shutterstock

PRIVATE HEALTH INSURANCE customers could end up paying an extra 15 per cent on their premiums, an analyst has warned.

Dermot Goode of Cornmarket told RTÉ’s Morning Ireland that yesterday’s decision by Health Minister James Reilly to increase the levy on health insurance would accumulate with lowered tax relief to hit 90 per cent of policy holders.

Goode said that families and individuals could end up paying between three and 20 per cent more on their premiums.

Laya healthcare and Glohealth have both warned that the move will force people out of the private healthcare market and increase the burden on the health system.

Goode agrees with that sentiment, saying that young people are most likely to be forced from the market, with 250,000 people already having cancelled policies in the last four years.

“Those young people are the lifeblood of a community rating model because they effectively subsidise the older members.

“We are forcing those younger, healthy people out of the system and that, in turn, pushes up claims costs.”

Read: Department of Health to increase cost of health insurance policies

Read: Reilly: Everyone will have free GP care by 2016, IMO: There’s no hope of that

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