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Generic Tax Name Levy on private health insurance
Tax name in the national language Private Health Insurance Levy
Tax name in English Private Health Insurance Levy
Member State IE-Ireland
Tax in force since 2009/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Stamp Duties Consolidation Act, 1999 as amended by later Finance Acts.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

 
Taxpayers

Private Health Insurance Providers.

 
Tax object and basis of assessment

This is an annual levy on private health insurance which funds the Risk Equalisation Scheme.   The levy is charged in respect of each person named on a policy. 

A permanent risk equalisation scheme was provided for in the Health Insurance (Amendment) Act 2012. Under this new scheme, which applies to renewals from 1 January 2013 the Stamp Duty (Health Insurance Levy) continues to be payable, but the previous “age related income tax credits” are replaced by “risk equalisation credits”.  

Levy payments are characterised as a Stamp Duty, and go directly into the new Risk Equalisation Fund.

Risk equalisation is a process that aims to equitably level out differences in insurers’ claim costs that arise due to variations in the health status of their members, and ultimately reduce the cost of health insurance for older persons, to achieve the Government’s policy objective of community rating.

The new scheme will allow for a greater number of risk factors than the previous Interim Scheme, including a measure of health status, and is linked to the principle of Community rating.  Community rating needs to be supported by a scheme which subsidises the cost of health care for older and sicker people across the market of health insurers, where one or more companies have a greater share of older or sicker customers.

 
Deductions, Allowances, Credits, Exemptions

Contracts of insurance relating solely to public hospital in-patient services are excluded from the definition of premium subject to the levy.

 
Rate(s) Structure

 

01/03/15-28/02/16
  Non-Advanced Advanced
Under 18 €80 €135
Over 18 €240 €399

 

 
Tax due date

The legislation imposes a levy on an insurer in respect of policies of insurance renewed or entered into during an accounting period being a period of 3 consecutive months beginning on 1 January, 1 April, 1 July, and 1 October.    Payments are due from insurers on the 21st day of the second next  month following the end of the accounting period in question.

 
Tax collector

Duty to be submitted by health insurance provider to Revenue Commissioners for transmission to the Risk Equalisation Fund.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code not yet known

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 436.77 EUR 0.25
2011 347.00 EUR 0.20
2010 317.00 EUR 0.19
2009 196.90 EUR 0.12

Comments

The 2009 yield is for policies entered or renewed from 1 January to 31 July 2009.  Other years show yield for policies from 1 August to 31 July.  The levy payment on 21 January 2013 is for policies from 1 August to 31 December 2012.  The yield for 2013 for the interim scheme is €172.58 million. The Yield for the new scheme (for renewals from 1 January 2013) is €412.93m.  Total is €585.51