The extra premium imposed on people taking out health insurance for the first time may be reduced under proposals being considered by the industry regulator.
Among the changes being considered is a 10-year limit to the amount of time new health insurance customers would have to pay an extra loading on their premium.
The Health Insurance Authority is also considering whether to grant relief from the loadings to people moving, or returning, to Ireland.
The authority believes many of the 10,000 people now paying a loading on their health insurance are unaware they are doing so because they have joined through their employer. As a result, they may not be claiming credit for previous periods of cover.
The authority has begun a two-month consultation on lifetime community rating in the private health insurance market.
Lifetime community rating, which was introduced in 2015, provides for a “late entry loading” on the premiums for those aged 35 or more who are taking out health insurance for the first time. The loading, designed to encourage consumers to take out insurance early in life, is 2 per cent of the premium for each year the person is over 34 years when they sign up.
Loadings
In a consultation paper published as part of the review, the authority says 10,687 insured people now pay the loading. Most are under 50 but a small number of older subscribers are paying loadings of up to 70 per cent.
In Australia, which has a similar market to Ireland, lifetime community rating was amended so loadings are automatically waived after 10 years, according to the paper. In addition, new arrivals were given a year to join without loadings applying. The paper suggests changes should be made to Irish legislation similar to those introduced in Australia.
It also suggested changes for ex-members of the Defence Forces, who currently cannot have the cover they enjoyed while serving taken into account when they subsequently take out private health insurance.
The consultation closes on March 3rd.
