Over-35s who sign up for health insurance from next May will have to pay a loading of 2 per cent per year, under new regulations signed into law today by Minister for Health James Reilly.
The change means a 40-year-old buying health insurance for the first time after next May 1st will have to pay 12 per cent more than someone of the same age who is already insured.
A 50-year-old will face a 32 per cent loading while the “age at entry” loading will be capped at a maximum 70 per cent for those aged 69 years and over.
Credit will be provided for periods of unemployment or living abroad, and for previous periods during which health insurance was held.
The measure, known as Lifetime Community Rating, is designed to encourage younger people to take out health insurance. Younger subscribers are normally healthier and their entry into the market would help drive down premiums.
Currently, everyone is charged the same premium for a health insurance product, regardless of their age, gender or health status - a policy known as community rating.
Dr Reilly said the measure, which has been signalled for some time, was being introduced to make the insurance market more efficient.
“This is an important initiative which will support sustainability and competitiveness in the health insurance market. I want to encourage young people into the market at an early age,” he said.
“At the moment, anyone can wait until quite late in life to join, and enjoy the same community-rated premium paid by people who have health insurance all their lives. Given the changes to the market profile, this is no longer considered appropriate.”
No loading will apply during the grace period up to next May. Credit of up to three years will be provided for people who previously had health insurance cover but stopped it since 2008 because of unemployment.
Where a person previously had cover but let it lapse, the loading they pay on resuming cover will be reduced by the number of previous years cover.
