Encouraging Youth to Buy Health Insurance Plan

Earlier Mr. Varadkar expressed although a large majority of Indian citizens have not availed a health insurance plan, but they would want to buy health plans if it was made affordable. However, the situation is bound to change from April 1, 2015. Thefirst-time health insurance buyers will have to pay more, if they are older than 35 years, from 1^st May, 2015. People signing up for the health insurance before this period would gain more.

The Health Minister will soon launch a new campaign on introducing the health insurance for “late entry” levy. He has structured a “Lifetime community rating’ which will encourage the youth to sign up for a suitable health insurance cover.

As per the ratings, if the individual is over 35 years of age and does not have a health cover, he would pay a penalty of 2% per year, if he opts to avail a plan in the future. For a50-year-old, it will be a 32% increasein the penalty.

That sounds alarming, but Mr. Varadkarexplained: “Health insurance is voluntary, and there are people who are unable to afford it, but the loading of 2% a year will be applicable to people who are opting for the policy between the ages 35 and 45 years. However, exemptions will bemade in case of unemployment. If seen in a postive limelight, the plan would work out like a pension plan.”

How is the plan beneficial? When a person opts to pay for his pension at the age of 50-years and receives the pension at 66-years, the benefits are lower as compared to a30-year-old individual. Similarly, if the health cover is purchased at a younger age there are more benefits.

(Source: This article has been adapted from the article "Over 34s urged to take out health insurance before new levy" that appeared on 4 march 2015 in rte.ie.)

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