Health insurance prices to rise, despite stamp duty cut
A health cover analyst has said a cut in the stamp duty rate on private health insurance is likely to be offset by a rise in premiums next year.
Dermot Goode, from Total Health Cover said the Government looks set to implement a reduction in stamp duty that will reduce policy costs from €35 to €43, depending on the policy.
He said that it will not take effect until 1 April, and that policy holders who renew before then will not get the benefit of the reduction until 2023.
Mr Goode said it is not clear if the reduction in stamp duty would be a once-off or permanent cut, nor whether insurers will pass it on to policyholders.
He said that the reduction would be “small but welcome”.
However, Mr Goode said that the bad news for consumers is that the cost of health premiums is set to increase by an average of 5%, which will push prices up by between €50 and €150 euro per adult.
He advised consumers to shop around and talk to their insurer at renewal stage, as VHI are retiring some plans and many people are overpaying for their insurance.