Thursday, 19th March 2015
- Health Insurance Authority clarifies that periods of cover as a named adult on a health insurance policy will be taken into account for the purposes of Lifetime Community Rating.
Clarification of new health insurance rules by the Health Insurance Authority reassures everyone who is named on an existing policy. It is very welcome that the HIA has confirmed that any adult named on a health insurance policy will avoid any loadings that will come into effect from 30th April. The point about the new rules is to encourage people to participate in health insurance where they can afford it.
It is regrettable that there was a need for the rules about lifetime community rating to be clarified. But now that they have been, the interpretation makes practical sense. Where someone is named on a health insurance policy and a full adult premium is paid for them, those periods of cover are taken into account for the purposes of Lifetime Community Rating.
Lifetime Community Rating is all about encouraging people to take out and maintain health insurance from a younger age. The effect of this new policy will be to make it financially more attractive for people to take out health insurance before turning 35 years of age and to maintain it over their lifetime. Up until now there has been no incentive for younger adults to take out health insurance, from 30th April that will all change, there will be a clear benefit to taking out health insurance when you are younger and healthier.