Lifetime
Community
Rating
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Health insurance from Aviva My cover. My way.1st May 2015
‘Lifetime Community Rating’
introduced.
Lifetime Community Rating comes into effect from 1st May 2015, which means that health insurance premiums will be increased for all members over the age of 34 who are taking out health insurance for the first time.
This will mean that if you are purchasing a private health insurance policy for the first time from 1st of May 2015 and you are aged 35 years or older you may have to pay a 2% loading on top of your premium for every year you are aged over 34 up to a maximum of 70%!
At the same time, credits will also be allowed for individuals who previously held health insurance but stopped their cover since 1st January 2008 due to unemployment. This credit will be limited to a period of 3 years.
The good news is that Cornmarket is here to help you with our FREE Health Insurance Comparison Service.
For more information on Lifetime Community Rating please visit our website: www.cornmarket.ie
To find the Plan that’s right for you, call one of our Health Insurance experts on (01) 470 8069 and see how much you can save.
deadline
1st may 2015!
www.cornmarket.ie
(01) 470 8069
Up until 30th of April 2015, everybody in Ireland who purchased a health insurance policy will have been charged the same premium for a particular health insurance plan. This is irrespective of their age, gender and the current or likely future state of their health under a system known as Community Rating. With the introduction of the government’s new Lifetime Community Rating legislation, late entry loadings of up to 70% can be applied to the premiums of those who join the health insurance market at age 35 or over after the 1st of May 2015.
Lifetime Community
Rating (LCR)
How does the introduction of LCR affect me?
What is Lifetime Community Rating (LCR)?
Under LCR, community rating is modified to reflect the age at which a person takes out private health insurance. Late entry loadings will be applied to the premiums of those who join the health insurance market at age 35 or over. If you take out private health insurance earlier in life, and retain it, you will pay lower premiums compared to someone who joins when they are older.
Why is LCR being introduced?
The primary reason the Government is implementing Lifetime Community Rating is to encourage people to sign up for health insurance before their 35th birthday. Encouraging more people to join the market at younger ages helps spread the costs of older and less healthy people across the market, helping to support affordable premium levels for all.
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of cover and, therefore, no LCR loadings will apply. In addition, the Regulations set out the circumstances when age at entry loadings can be reduced, where the customer has a qualifying credited period. A credited period can apply where individuals previously had health insurance. In addition, provision is made for a credited period (in total not exceeding 3 years) for individuals who previously had health insurance cover, but who stopped their cover since 1st January 2008 because of unemployment (for a period of at least 6 months while being in receipt of a relevant Social Welfare payment).
If I had private health insurance
previously, but let it lapse, do I still have to pay the loading?
Yes, but the level of loading will be reduced by the number of previous years health insurance cover.
Will my age affect my health insurance premium?
Yes. If you have private health insurance on or before 30th April 2015, you will pay no loading. After 1st May 2015, if you are under 35 years of age, you will pay no loading. However, if you are aged 35 or over, or have a break in cover in excess of 13 weeks, you will incur a 2% loading for every year over the age of 35, on top of your premium.
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Who will pay this loading?
Anyone who takes out private health insurance at age 35 or over, and who does not have qualifying periods of credit, will pay a loading. The level of loading will depend on the age at which the person takes out private health insurance.
How much will it cost?
From 1st May 2015, if you are purchasing a private health insurance policy for the first time at age 35 years or older you will pay a 2% loading on top of your premium for every year you are aged over 34. For example, if you take out a private health insurance policy for the first time at age 40 you will pay 12% (2% x 6) more than someone who took out their cover before the grace period expired. At 45, it would be 22% up to a maximum of 70% at age 69. Under legislation, the loading cannot be waived by any insurance company.
How do I avoid this loading?
The only way to avoid the loading is to ensure you have a valid Private Health Insurance policy in place before 1st May 2015.
Are there any exemptions from lifetime community rating loading?
Yes. Everyone who has health insurance at the end of the grace period (30th April 2015) will be assumed to have a continuous period
To ensure that you hold appropriate cover, avail of your FREE impartial Health Insurance Review now.
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What happens if I switch from one insurer to another?
Switching from one insurer to another or from one policy to another does not affect the applicable loading. Loadings, if any, will continue to apply and insurers are required to supply each other with proof of an individual’s prior cover.
Will the level of the loading be reviewed periodically and if so when?
The Health Insurance Authority will carry out a review of the operation of LCR after a period of two years.
Can I drop my private health insurance cover for a period of time?
Periods of up to 13 weeks without cover will be allowed without affecting your loading. If a break in cover of over 13 weeks occurs you will be subject to a loading.
Where can I get independent information about private health insurance policies?
You can obtain details on our website www.cornmarket.ie.
The Health Insurance Authority provides information on all policies’ available at: www.hia.ie.
Will I have to pay a loading for the rest of my life if I continue to maintain my private health insurance cover?
Yes. The loading that applies when a person purchases private health insurance after 1st May 2015 will apply in subsequent years.
Why is LCR being introduced from age 35 rather than a younger or older age?
35 is considered to be an appropriate age to allow young people sufficient time to complete education and to achieve secure employment for a number of years.
Why is the rate of loading set at 2%?
The method used to calculate the rate of loadings is based on an assessment across all ages in the market. 2% per year is considered to be a reasonable rate of increase, without being overly punitive.
What is the maximum loading that will apply?
The maximum loading that can apply is 70% of the total premium. A loading of 70% will only arise on very rare occasions, where a person aged 69 or older is purchasing private health insurance for the first time.
Can an insurer make an exemption for me from the LCR loading?
The application of loadings will be mandatory and cannot be waived by an insurer.
If I take out Health Insurance for the first time during the grace period, do I pay a loading on my Health Insurance premium?
In this example, no loading will apply.
Purchasing Health Insurance
on or afTer
1st May 2015
(For the first time or following a lapse in cover)
If I take out Health Insurance for the first time following expiry of the grace period, will a loading apply?
Yes, in this example, the late loading will apply, calculated as follows:
Age 37
Less any qualifying credit – prior PHI cover 0
Social Welfare credit period 0
Age at entry (for loading purposes) 37
Applicable Loading (3 x 2% per year) 6%
DAVE
Aged
37
SINÉAD
Aged
37
Purchasing Health Insurance
afTer
1st May 2015
(For the first time or following a lapse in cover)
If I take out Health Insurance after 1st May 2015, having had Health Insurance cover for 7 years (up to 2008), will a loading apply to me? Yes, in this example, the late loading will apply, calculated as follows:
Age 45
Less any qualifying credit – prior PHI cover 7
Social Welfare credit period 0
Age at entry (for loading purposes) 38
Applicable Loading (4 x 2% per year) 8%
If I had Health Insurance previously for 10 years but lost my job in 2010 and have 3 years qualifying period of unemployment, and I take out Health Insurance after 1st May 2015, will I have to pay loadings, and if so, how much?
Yes, in this example, the late loading will apply, calculated as follows:
Age 50
Less any qualifying credit – prior PHI cover 10
Social Welfare credit period 3
Age at entry (for loading purposes) 37
Applicable Loading (3 x 2% per year) 6%
ORLA
Aged
45
ENDA
Aged
50
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