Health Insurance Market Reforms
Scheme of Age-Related Tax Credits and Community Rating Levy
The scheme, which is administered by the health insurers, has been in existence since 2009. It is Exchequer neutral and ensures that every customer has the benefit of a community rated health insurance premium. Community rating in principle means that each insurance policy, containing specified benefits, is priced the same to everyone, irrespective of their age or medical condition.
The scheme allows insurers with additional costs arising from insuring older people (who have a preponderance of claims) to be compensated for up to, but no more than, 65% of these additional costs. It works by allocating Tax Credits to insurers for persons in three age bands and funding this by the payment of a Levy by all insured persons in the market.
