Minister Varadkar ‘acting like tout for private sector’

People Before Profit has accused Health Minister Leo Varadkar of acting like a “tout” for the private health insurance industry.

It claimed the a new loading that will be applied to anyone over the age of 34 taking out health insurance for the first time after April 30 was a scare tactic.

Richard Boyd Barrett said it was yet another measure that people on lower incomes could not possibly avail of due to the overwhelming burden of austerity.

“Leo Varadkar’s job is not to act like a tout for the private health insurance industry; to boost their super profits, which is what he is doing with this move,” said Mr Boyd Barrett.

“His job is to ensure we have a public health system that is available to all that need it.”

Earlier, the minister said the application of Lifetime Community Rating was a way of rewarding people for taking out health insurance when they were young and well.

It was also a way of keeping prices down for older people.

Mr Varadkar said that universal health insurance (UHI) was still “the long-term vision” and he intended to go to the Government with a “road map” this summer on the introduction of UHI.

He believed it was possible to get to a point where well over half the population had voluntary health insurance.

“It has to be affordable before it can be compulsory and the steps taken to date and the ones being made now are that process in action,” he said.

Yesterday, the minister attended the launch of the Health Insurance Authority’s public information campaign to encourage anyone who does not have health insurance to take it out now to avoid age-related loadings.

However, with under eight weeks from the April deadline, a staggering 88% of people aged over 30 without health insurance have not heard of Lifetime Community Rating.

The research from Laya Healthcare reveals that 82% find Lifetime Community rating too confusing.

And, crucially, most (62%) of those over the age of 30 do not plan to take out private health cover, with 33% undecided.

Laya Healthcare managing director Dónal Clancy said the message needed to focus on affordability and value.

“We must ensure that we are getting the message trough that there is real value to be had right now in the market, with plenty of options to suit those with a limited budget,” he said.

General manager of the health division of Cornmarket Group Financial Services, Dermot Wells, said many people did not realise that a health insurance loading would apply over their lifetime.

“The loadings will have to pay for the rest of the insurer’s life; they cannot be waived by any of the insurance companies,” said Mr Wells.

And while there had been a noticeable increase in inquiries about health insurance he did not expect people to start taking out plans until the last two weeks of April.

What’s it all about?

What is Lifetime Community Rating?

It is a Government initiative to encourage younger people to take out private health insurance.

When and how will it be applied?

After April 30, anyone over the age of 34 who takes out private health insurance for the first time will have a loading, or rating of 2% per year, applied to the premium.

Will I have to pay a loading for the rest of my life?

Yes.

Are health insurance cash plans included in Lifetime Community Rating?

No. A loading will not be applied to such plans.

Are my previous periods of cover taken into account in calculating the loading?

Yes, if you take out in-patient private health insurance after April 30, your previous periods of cover at taken into account.

What about people who have emigrated? Will they have to pay the loading when they return?

Anyone who lives outside the State on May 1 and moves here will have nine months to purchase inpatient private before being liable for a loading.

I had to give up my insurance because I couldn’t afford it any more after I lost my job?

There is an allowance of up to three years for periods of unemployment after January 1, 2008. Those periods will be treated as if you did have insurance cover when calculating any premium loading.

What is the maximum loading that can apply?

The maximum loading is 70% of the gross premium in the event of a person aged 69 or older purchasing inpatient private insurance for the first time.

What happens if I switch insurer?

Switching insurers does not affect loading.

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