More tax relief needed to offset rising health insurance costs – Kennelly

Rising health insurance costs could be alleviated by additional tax relief, a Fine Gael Senator has said.

Senator Mike Kennelly says it’s time to review the current tax relief structure in place with regard to private health insurance, to ease the financial burden on policy holders.

He said: “The current reduced tax relief on health insurance premiums was introduced as a temporary measure during the financial crisis, but has not been reviewed in the years since, despite significant changes in the economic landscape.

“Prior to 2014, tax relief was granted at the marginal rate, typically 40 percent. It was then standardised at 20 percent as part of an austerity package.

“We are now seeing sharp and relatively frequent increases in health insurance premiums, which are becoming increasingly difficult for people to sustain.

“Families who work hard, pay their taxes and try to protect their loved ones by maintaining health cover now face renewal notices that bring anxiety instead of reassurance.  For many, the cost of health insurance is beginning to rival a mortgage payment. That is simply not sustainable.

“Health insurance should bring security and peace of mind, but these premium hikes are placing it beyond the reach of many, placing them at higher risk if they need unforeseen treatment or face an emergency procedure.”

Senator Kennelly highlighted the growing impact on older people and retirees, in particular, many of whom rely heavily on timely access to healthcare but are increasingly unable to afford the cover they once depended on.

“At the very stage of life when health insurance becomes most critical, older people are being priced out entirely. Their fixed incomes cannot keep pace with the relentless rise in premiums. These are individuals who contributed throughout their lives, yet the system no longer supports them when they need it most.

“Families are now facing a double hit with rapidly rising premiums on one side and a weakened tax relief offset on the other. There has been no adjustment whatsoever to help households absorb the increases in premiums over recent years.”

Senator Kennelly has asked the Minister of State at the Dept of Finance, Deputy Robert Troy to confirm if a review of the current tax relief structure will be conducted.

“There is a large and growing constituency of hard-working people who feel they are being quietly priced out of private healthcare. They feel unheard and they are right to be frustrated. A review is overdue and necessary.”