Health insurance move fails to tackle 'crisis of affordability'

Concerns are being expressed about the Government's plan to make people aged over 35 pay more for health insurance when they take it out for the first time.

A 2% penalty will be added to premiums for each year over that age, in an effort to get younger people back into the market.

The last six years have seen more than 250,000 people drop their health insurance policy.

Health Economist Ray Kinsella says people will have an incentive to join early, and it will also encourage those considering giving up their insurance, to keep it on.

However he thinks it won't address one serious point, saying: "The big issue for me is the fact that the real problem is the crisis of affordability.

"The minister has introduced this to, as he says, make the market more sustainable but the real problems have to do with affordability, and this measure does not begin to address the affordability issue."

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