Health Insurance (Amendment) Bill 2014 06.11.2014

The Department of Health published the Health Insurance (Amendment) Bill 2014 on 6 November 2014. Among the measures included in the Bill is giving insurers discretion from 1 May 2015 to charge discounted premiums for young adults in the age range 18-20 of not more than 50% of the adult premium and in the age range of 21-25 of 50-100% of the adult premium.

Additionally there will no longer be a requirement for a young adult to be a student or dependent on an adult on the policy in order to qualify for the discounted premium.

These measures are to be introduced alongside Lifetime Community Rating (LCR), which will be applied from 1 May 2015. Under LCR, late entry loadings will be applied to premiums of customers over 34 who have not bought health insurance before 1 May 2015, at a loading of 2% per year attained over 35, up to a maximum loading of 70% at age 69.

The Bill also proposes changes in risk equalisation credits and stamp duties from 1 March 2015 to provide further support for community rating in the health insurance market.