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BIK on Medical Insurance

The Health Insurance (Miscellaneous Provisions) Act 2009, as amended, provides that where medical insurance contracts
were entered into or renewed between 19th July 2009 and 31st December 2012, an age related tax credit (ARTC) applied to premiums in respect of insured persons aged 60 years and over. Where an employer paid a medical insurance premium as
a BIK for an employee, the gross value of the premium before deduction of the ARTC or TRS (tax relief at source) was the figure which was liable to BIK. The employer was required to pay the TRS over to Revenue, but the ARTC was not payable to Revenue. The employee was entitled to claim the appropriate tax credits (TRS and ARTC) from Revenue, however the ARTC credit was granted at the end of the tax year. A claim form is available on the Revenue website at:

The ARTC ceased to apply to medical insurance contracts entered into or renewed on or after 1st January 2013. Where a
medical insurance policy was renewed or entered into in 2012, and the premium continues to be paid in instalments in 2013,
the BIK should be calculated on the gross premium inclusive of the ARTC until the next renewal date. The ARTCs for 2012 were
as follows:

Age (years) 60 - 64  65 - 69  70 - 74  75 - 79  80 - 84 85 or more
ARTC €600 €975 €1,400 €2,025 €2,400 €2,700

The Health Insurance Acts 1994 to 2012 provides that where medical insurance contracts are entered into or renewed from
1st January 2013 a risk equalisation credit (REC) will be applied in respect of insured persons aged 60 years and over. The amount of the REC depends on the age and sex of the individual and the level of cover provided under the policy. The REC replaces the Age Related Tax Credit.

Where an individual aged 60 years or over has a medical insurance policy and makes a payment directly to the medical
insurance provider, the individual is still only liable to pay the net premium (after TRS and the REC had been allowed at source)
to the provider.

Where an employer provides medical insurance as a BIK to an employee aged 60 years or over, the REC has no impact on the notional value for BIK purposes. The BIK is calculated on the gross premium before TRS in the same manner as employees
who are under 60 years of age. The employer is still required to pay the TRS over to Revenue, and the employee is entitled to
claim the appropriate TRS tax credit. The REC should not be included in the gross premium for BIK purposes.

For medical insurance policies entered into or renewed in 2013 or subsequent years, the method of calculating the BIK is the same for all employees, regardless of age


Softcom does not accept any responsibility. The above is for reference ONLY. Please consult the relevant Department before making any decisions.