From May 2015, anyone aged 35 or older who wishes to take out private health insurance for the first time will be charged extra for doing so.

From May 1 of next year, 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 has been signed into law by 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 new 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.

"Credit will be provided for previous periods of health insurance and for periods of unemployment since the economic downturn in 2008," the Department of Health said.

Minister Reilly stated that he had signed the new measure into law to encourage people to take out private health insurance at a younger age, which will help to control premium inflation across the health insurance market.

The Minister insisted that this is an ‘important initiative that will support sustainability and competitiveness in the health insurance market'.

"I want to encourage young people into the market at an early age. At the moment, anyone can wait until quite late in life to join, and enjoy the same community-rated premium paid by people who have had health insurance all their lives. Given the changes to the market profile, this is no longer considered appropriate, and it doesn't encourage an efficient insurance market," he commented.

Anyone aged 35 or older who wishes to take out private health insurance without being loaded against has until May 1 to do so. Existing customers who continue to retain their cover will not be affected by the move.