The stamp duty attached to health insurance policies is to be reduced in a move which could save some families close to €100 a year if it is passed on by providers.
The move was sanctioned by the Health Insurance Authority (HIA) and comes in the wake of successive health insurance price increases from all providers this year.
While the HIA has no role it setting the price of policies offered by providers it called on all health insurance companies to incorporate the reduction into their pricing.
It said the recommendation was based on recent trends in the health insurance industry as well as consultation with the health insurance companies.
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The annual stamp duty supports the community rating system which allows everyone, regardless of their health status and other risk factors, to buy the same health insurance policy at the same price.
“The reduction in stamp duty is something that we hope will provide a small saving to consumers, said HIA chief executive Ray Dolan.
“We estimate that at this particular time of year, over 50 per cent of people are renewing their health insurance, and we would hope that consumers see this saving in their renewal premium.”
The reductions vary, but about three-quarters of policy holders will see an €18 reduction in stamp duty for their advanced policies, which are policies that generally provide cover for both public and private hospitals.
Advanced policies are held by 93 per cent of people with private health insurance.
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