PHI - Government Levy and Tax Relief

[FargoBoyle]

Hello People,

I have a question regarding the Gov Levy and Tax relief on Private Health Insurance. I have spent 6/7 hours today and yesterday trying to make sense of it all.

My insurance is up for renewal and I wish to downgrade my plan. To make an informed decision I have to understand how the final cost is arrived at and hence this post.

To make things more difficult the information in my renewal notice does not exactly equal the information from my PHI website. The cynic that I am assumes the PHI's and the gov intentionally do this to confuse consumers into paying over the top for their policies. This is a different topic to the one posted so I will side step this for now.

I have checked other websites, including gov websites and cannot find concrete information on levy and tax relief information so any links would be appreciated.

My PHI for 2013, renewed in Jan 2013.
(Using approx values for gross value to avoid identifying PHI)

Gross 1650 + Gov Levy 285=1935- 20% Tax Relief 387=1548 (Net price)

My Renewal price from PHI in writing, due to renew end Jan 2014.

Gross 1800 + Gov Levy 350=2150 - 20% Tax Relief 200=1950 (Net Price)

Difference of E402 for same plan. (an EXTRA E33 a month!)
I understand the Tax Relief went from 20% of total figure to 20% of E1000 max, ie E200 max relief for policies over E1000.

Questions
1. What is the qualifying criteria that dictates whether you are on a "Non-Advanced Plan" or an "Advanced Plan". (Gov Levy changes depending on your plan )

2. Have I moved from Non Advanced to Advanced in the above example.

3. Any links to clear info on the Gov Levy.

4. Are the new gov levy figures not due until March?

Any help appreciated.

 

[FargoBoyle]

Interesting reading assuming the data is factual.


Review of Measures to Reduce Costs in the Private Health Insurance Market 2013
Independent Report to the Minister for Health and Health Insurance Council

Dated Nov 2013

Can be found on the healthupdate.gov.ie site.


Probably turn out to be the usual quango guff, if any savings created will probably benefit Gov and PHI's.

 

[BazzaDP]

FargoBoyle I did the same calculations for someone else here which might be if interest to you:
http://www.askaboutmoney.com/showthread.php?p=1356492#post1356492

The HIA website website is supposed to be the best place to get this information but I find it a little confusing as it seems too eager to include historical information and yet still doesn't include the new rates due to come in effect on 1st March 2014: http://www.hia.ie/regulation/risk-equalisation/

An advanced plan is basically any plan with private hospitals. All but the very basic plans are "advanced". Again HIA website could be a lot clearer on that.

Your plan is advanced and you paid €285 levy as part of your premium last year (bottom table on that HIA page). This has now gone up to €290 (3rd table from bottom on that HIA website). If you are renewing this month you should stay on €290 levy. If renewing after March 1st then it increases to €350. Don't know why your insurer seems to be wanting to charge the higher figure earlier based on what you've said. I'd query that with them.

 

[FargoBoyle]

Hi BazzaDP,

Thanks for reply.

I read the link you provided on the tax relief and it has answered my questions there so I'm happy with that despite it being a very large increase for one calendar year. I remember it from the budget but didn't think through at the time its full affect. (The desired effect from Gov presumably) Also does this leave some scope for a person to claim back the remainder (the part after E1000) in medical expenses from revenue! A long shot me thinks.

As for the the Gov Levy (Risk Equalization) you are right the information available is poor. I read the HIA link you mentioned and can't make much sense of it. Am I to gather then that the E285 rate was increased to E290 sometime in 2013 and therefore E350 for those renewing after March 1 2014.

(Advanced Plans)
I.e. - 2009 E160
I.e. - 2010 E185
I.e. - 2011 E205
I.e. - 2012 E285
I.e. - 2013 E290 (I got in before change hence E285 for 2013)
I.e. - 2014 E350 (After March 1 2014)

Again a large increase in one calendar year.

If these are the figures for an "Advanced Plan" what would the equivalent be for "Non Advanced Plan" ?

(Non - Advanced Plans)
I.e. - 2009
I.e. - 2010
I.e. - 2011
I.e. - 2012
I.e. - 2013
I.e. - 2014

Kind Regards,
Fargo

 

[FargoBoyle]

Also does anyone think that my current renewal price from my PHI company with a gov levy that is not supposed to be in operation until March 2014 is

(A) an innocent mistake on the part of PHI company,
(B) just plain stupid, or
(C), the dirty tricks you can expect from large multinational insurance company.

 

[BazzaDP]

Oh it's definitely a mistake. Unfortunately on my part :-( It IS €350 now increasing to €399 in March. Apologies. Told you HIA website could be clearer!

The non advanced thing is a new thing last year. So non advanced was €290 for most of last year (€285 for Jan, Feb, Mar) and is not changing in March this year. So those on non-advanced from January last year only increase €5 (from €285 to €290) whereas everyone else is lumped with a €114 increase (from €285 to €399).