Tax Relief Changes

The Budget announcement on Tuesday October 15th 2013 has resulted in a change in Tax Relief that will affect some of our members. Whether or not you are directly affected by the changes will depend on the type of scheme you are on. Laya healthcare was not consulted on this change or the potential impact on the market. In order to address any confusion this may have caused our members, we have answered some common queries below.

What is TRS?

TRS stands for Tax Relief at Source. Prior to the Budget 2014 announcement those who had private medical insurance had 20% tax deducted from their full Gross Premium by their private medical insurers on behalf of the Revenue Commissioner.

The change implemented in the Budget meant that 20% TRS for Adult Gross Premiums are now capped at €1,000 on the Gross Premium amount and children’s/student’s Gross Premiums amounts are capped at €500.

This means that a scheme where the Gross Premium is more than €1,000 per adult and/or €500 per child/student will be affected.

Example of a scheme that has changed:

Adult	Scheme	Gross Premium	TRS	Tax deducted at source	Net Premium – Paid by the member
Before the Budget Announcement	Health Smart	€1,525.79	20%	€305.00	€1,220.79
After the Budget Announcement	Health Smart	€1,525.79	20% capped at €1000	€200.00	€1,325.79
Additional Post-Budget 2014 Amount Now Payable					€105.00
Child/Student
Before the Budget Announcement	Health Manager	€837.33	20%	€167.46	€669.86
After the Budget Announcement	Health Manager	€837.33	20% capped at €500	€100.00	€737.33
Additional Post-Budget 2014 Amount Now Payable					€67.46

Has Laya Healthcare increased my premium?

The reduction of the tax relief means that net premiums for customers will increase, however this is as a direct result of the budget announcement and not as a result of any increase imposed by laya healthcare.

I received my November Renewal - will the price of this change?

This is dependent on your scheme. If the gross premium for either an adult or child/student on your policy is over the amounts of €1,000 and €500 respectively your renewal subscriptions will increase.

My renewal is November but I got a quote on or before 15th October 2013, can I still make the changes?

The price in the quotation you received is now subject to change. If the level of cover you want to change to is over the gross amount of €1,000 or €500 for a child then you will be affected. If it is under these prices then the quotation price will remain unchanged.

My renewal date is November and I have already paid my premium - what happens?

The renewal price you have paid may be subject to change. If the level of cover you currently have is over the gross premium amount of €1,000 or €500 for a child then you will be affected. If it is under these prices your renewal premium will remain the same. Where your policy is affected we will send you an updated November Renewal Certificate which includes your updated subscriptions. Unfortunately the budget changes mean that you are liable for the difference in the increased subscriptions.

My renewal is coming up in December – what happens?

In this situation you don’t need to do anything, you will receive your renewal pack in the post shortly and your renewal premium will include these changes.