Society responds to HIA consultation on Lifetime Community Rating

The Society made a submission to the recent Health Insurance Authority consultation on Lifetime Community Rating, and has issued a press release which highlights the key finding in the submission.  

Under the current system, somebody who first takes out health insurance after age 34 must pay an additional loading, calculated as 2% of the premium for each year by which he or she is older than 34, for the remainder of his/her lifetime. The analysis carried out by the Society shows that the current requirement that the customer pays the loading for life is unduly punitive but that adopting the approach used in Australia, whereby the additional premiums cease after 10 years, would lead to a strain on the system unless there were an increase in the current loading and/or a reduction in the current age 34 starting point.  The analysis suggests there is scope to reduce the additional premium payment term to 20 years, which would be fairer to customers than the current system, but would still act as an incentive to take out health insurance at younger ages.