A major new publicity campaign has been launched to remind adults aged 35 and older who do not have private health insurance, that they will be charged extra for taking it out from May of this year.

From May 1, private health insurers will be allowed to load premiums by 2% per annum from the age of 35, as part of Lifetime Community Rating, which was signed into law last summer by former Health Minister, Dr James Reilly.

Community-rated markets depend on the ongoing entry of younger people, as they tend to claim less on their policies, which keeps premiums down for everybody.

This move provides for ‘late entry loadings' on the premiums of anyone who purchases health insurance for the first time when they are aged 35 or older.

According to the Health Insurance Authority (HIA), this will be a permanent age-related loading of 2% per year over the age of 34. For example, if a 54-year-old decides to take out private health insurance for the first time after April 30 of this year, they will have a loading of 40% added to their premium every single year that they remain insured.

The maximum loading is 70% and this will apply to people aged 69 and older who take out insurance for the first time after April 30.

Speaking at the launch of the HIA's information campaign, Health Minister, Leo Varadkar, pointed out that over two million people are already privately insured, but ‘we need to get to a place where people really value their health insurance'.

"In our community rated market, one of the ways health insurance can become more affordable is to increase the numbers of people taking out cover at a younger age, particularly in their 20s and 30s. Lifetime Community Rating is designed to encourage people to take out health insurance before they reach 35 years and not leave it too late. In this way it will help to keep down the cost of insurance for everyone as they get older," he explained.

Meanwhile HIA chief executive, Don Gallagher, emphasised that there is just over eight weeks for those affected to take out health insurance if they want to avoid being loaded against.

"It is very important for those who are aged over 34 years, or who are approaching their 35th birthday, to inform themselves about Lifetime Community Rating and take action quickly if they wish to avoid age-related loadings on premiums," he said.

The HIA reminded people that up to three years credit will be given to those who cancelled their health insurance after January 1, 2008, because of unemployment. People who move to Ireland after April 30 will also avoid age-related loadings if they buy health insurance within nine months of establishing their principal private residence here.
The HIA is also reminding people that Lifetime Community Rating will have no effect on people who already have health insurance.

Information about Lifetime Community Rating, and all the health insurance plans available in the market and how they compare, is available on the HIA website here