TRS on health insurance policies

S

suzie

Registered User
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Hi all

Came across this on http://www.citizensinformation.ie/c...its-and-reliefs/taxation_and_medical_expenses

Health Insurance Tax Credit

If you are a member of an approved private health insurance scheme, you may get a tax credit. This tax credit is granted directly by the insurance company. Your premium will be reduced by the amount of the tax credit so you will probably not even notice that you have got a tax credit. This is known as Tax Relief at Source (TRS).

Subscribers to an approved private health insurance scheme pay a reduced premium (80% of the gross amount) to the insurance company. This is the same as giving tax relief at the standard rate of 20%.

Additional tax relief for health insurance starting for people aged 50 and over and increasing for higher age groups was introduced in 2009.

Additional Tax Relief for over 50's (2010)
Age Tax relief
50-59 €200
60-69 €500
70-79 €950
80+ €1,175

It is not necessary to claim this relief it is granted directly by the insurance company (Tax Relief at Source).

Is this age related relief shown in the breakdown of premium costs? I cant recall seeing it on my parents policy. Also does the policy holder need to be paying tax to avail of it?

Thanks

S.
 
Does anyone know how this actually works? Does the insurer charge the same net premium to persons over age 50, which means that the gross premium is €200 higher for someone in their 50s, thereby partly compensating the insurer for the higher risk without requiring the policy holder to pay more? Or should the net premium paid by someone in their 50s be €200 less.
 
Homer said:
Does anyone know how this actually works? Does the insurer charge the same net premium to persons over age 50, which means that the gross premium is €200 higher for someone in their 50s, thereby partly compensating the insurer for the higher risk without requiring the policy holder to pay more? Or should the net premium paid by someone in their 50s be €200 less.
Click to expand...

I've just found the answer to my own question.

Health Insurance Levy 2010

Community Rating Health Insurance Levy and Age Related Tax Credits 2010

The Irish State supports the private health insurance market through tax relief at source of 20% of health insurance premiums.

It also supports the community rated market by providing age related tax credits in respect of those over the age of 50 that help to meet their higher claims cost. The tax credits for policies taken out or renewed in 2010 will be €200 for those aged 50 to 59, €525 for those aged 60 to 69, €975 for those aged 70 to 79 and €1,250 for those aged over 80. Older people pay the same premium net of these tax credits for their health insurance as younger adults pay. These credits are funded by a levy paid by health insurers. In 2010 this levy is equal to €185 for each adult and €55 for each child. This measure is designed to be Exchequer neutral.

The tax credits and the levy, like the tax relief at source of 20% premium, are administered by the health insurance companies. The price of health insurance quoted by the health insurance companies allows for these measures.

These terms apply to Aviva Health, Quinn Healthcare and Vhi Healthcare.
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