Wednesday, 5 November 2014
- Private Health Insurance Package announced will make health insurance more affordable for young people.
These ‘Young Adult rates’ will address the sudden increase in premium rates that occur for most young adults after their 21st birthday. In many cases premiums can go up by more than 100%. Discounted rates for young adults will encourage young people to avail of health insurance. These people will, in turn, be additional customers for health insurance companies.
Since 2007, there has been a decline in the number of people aged between 18 and 26 who are taking out health insurance. A recent survey found that 48% of 18 to 24 year olds consider private health insurance a necessity and not a luxury, yet only 9% of people in this age group have cover.
The same 2014 Health Insurance Authority Survey found that reduced premiums are one of the primary factors that would encourage uptake among those who have never private health insurance.
Insurers will retain the discretion whether or not to provide Young Adult rates and I am calling on them to provide these rates and take the opportunity to attract new customers.
The measures announced today are designed to make private health insurance affordable again for as many people as possible. We want to try and limit the need for increases in premiums, and even secure some reductions if possible.