Lifetime Community Rating (LCR) is one of the most confusing and misunderstood areas of Irish health insurance.
If you have an LCR loading on your health insurance premium, it's worth understanding how it works — and, importantly, checking whether you have previous health insurance cover that could affect your loading.
LCR at a Glance
What is LCR?
A loading that can apply to your health insurance premium if you first take out cover at an older age.
When can it apply?
From age 35.
How is it calculated?
Generally, a 2% loading for each year over age 34.
Maximum loading:
70%.
How long can it apply?
Up to 10 years.
Previous cover:
Previous qualifying health insurance cover may reduce or eliminate your LCR loading.
What is Lifetime Community Rating?
Lifetime Community Rating was introduced to encourage people to take out private health insurance earlier in life and maintain their cover.
In simple terms, the older you are when you first take out private health insurance, the higher your premium may be.
For example, someone taking out health insurance for the first time at age 40 may have an LCR loading of 12%, depending on their circumstances and qualifying previous cover.
However, this is where things can become more complicated.
Have you had health insurance before?
One of the most important things to understand is that previous qualifying health insurance cover can count when your LCR is calculated.
You may have had health insurance through:
- An employer's company health insurance scheme
- Another health insurance provider
- A previous policy that you subsequently cancelled
- Cover before moving abroad
Even if you have had a break in your health insurance, it's worth checking your previous cover before assuming that an LCR loading applies.
Not sure if you had previous cover?
You're not alone. We regularly speak to customers who remember having health insurance in the past but don't have any paperwork to confirm it.
Our advice is simple: check.
Contact your previous health insurance provider and give them your name and date of birth. They can check their records and confirm whether you previously held a policy and the dates of your cover.
You can also request proof of previous cover, which can then be provided to your current or new insurer.
A real-life example
We recently had a customer move to us from another health insurance provider who had been paying a 40% LCR loading on his health insurance.
He had actually held health insurance for many years, apart from a period when he moved abroad.
We asked him to provide details and proof of his previous health insurance cover. After reviewing his history, we established that his previous qualifying cover meant that the 40% loading should not have applied.
As a result, he was able to have his position reviewed by the health insurance provider and ultimately received a refund of more than €12,000.
This is a great example of why it's important to check your previous health insurance history. A break in cover doesn't necessarily mean that your previous qualifying cover is irrelevant.
Has your LCR loading been applied for 10 years?
Lifetime Community Rating was introduced in 2015.
If you have been paying an LCR loading for 10 years, it is worth checking with your health insurance provider whether the loading should now be removed, depending on your individual circumstances.
Our advice
Don't simply assume that your LCR loading is correct.
If you have previously had health insurance — particularly through an employer — take some time to check your insurance history and obtain proof of previous cover.
Understanding your LCR position could potentially make a significant difference to the cost of your health insurance.
If you're unsure about your LCR loading or your previous health insurance history, contact your health insurance provider directly. They can check your records and confirm what previous cover you have on file and whether it may affect your LCR loading.
