The European Commission has said it is still assessing an application from the Government for approval for changes to the private health insurance system, which would see a community rating levy on insurers for each adult or child they insure.
The Commission said its assessment of the plan is in its preliminary phase and it will have further queries on the scheme for the Government here.
The plan was announced by Minister for Health Mary Harney in November and followed the Supreme Court decision in July 2008 to strike down the risk equalisation scheme aimed at keeping cover affordable, especially for older people.
A levy of €160 for each adult and €53 for each child insured is due to apply to private health insurance companies after the legislation is passed.
Extra tax relief on the cost of cover is also to be granted to people aged 50 years and over and the levy, which will raise around €300m, will fund the cost of this relief.
Competitors in the market have the right to comment and the Commission said it will listen to what they say.
The Commission said that as risk equalisation, the predecessor to the scheme now under consideration, faced objections and litigation it expects competitors to comment on the new proposals.
While it is treating the matter as a priority, the Commission said it could not give an exact date for a decision.
Hibernian Aviva Health has said it intends to mount a legal challenge to the levy, if it becomes law.
The company has promised to refund the cost of the levy to its customers who may have paid it, if it is successful in stopping the legislation.
Following news of the levy, Quinn Healthcare announced increases of between 10% to 19% in its prices for this year.
The VHI increased its prices by up to 23% but insisted that the levy was not a factor in its decision.
