Regulator says Budget change will hit 1.4 million health insurance customers

The official health insurance regulator has said changes to the tax system in the Budget will affect more than two-thirds of all health insurance customers.

The Health Insurance Authority said 1.4 million customers will be affected by the changes to the tax credits system.

The changes, which kicked in from Wednesday morning, will reduce tax refunds for adults who are on health insurance plans worth more than €1,000 a year.

It contrasts with Michael Noonan's claims that the changes would only affect "gold-plated pensions".

The Finance Minister is being warned that the public health system will face increased pressure as a result of the changes.

It is estimated that nearly 1.4 million people could be hit with a €100 increase in their health insurance plans which will result in the majority of customers dropping their cover.

Dermot Good of healthinsurancesavings.ie said the Budget has been bad news for the health sector overall.

Mr Good said: "There is going to be a smaller pool of people with private health insurance and that means that their costs are going to undoubtedly increase.

"That just continues the vicious circle and will heap more pressure on the public system which can’t cope.

"I would hope, if somebody has got their figures wrong here, in terms of what the outcome is versus what the intention seems to be, there definitely is a huge mismatch."