Health insurance & Bik what does it cost?

Greentree_uk

Hi, I'm sorry if this has been asked before but I was hoping someone could lay down how much health insurance will actually cost me?


My new employer offers it but I haven't decided to take it yet, myself, my wife and my daughter are all pretty healthy. So don't have many medical bills so far.

Lets start with an example. Say my work is prepared to cover myself, my wife and my daughter for. €4000. My salary is €70k and my wife doesn't work. How much will the insurance actually cost me out of my monthly pay? And is it even worth it?

Citizenpain

Greentree_uk wrote: »

Hi, I'm sorry if this has been asked before but I was hoping someone could lay down how much health insurance will actually cost me?


My new employer offers it but I haven't decided to take it yet, myself, my wife and my daughter are all pretty healthy. So don't have many medical bills so far.

Lets start with an example. Say my work is prepared to cover myself, my wife and my daughter for. €4000. My salary is €70k and my wife doesn't work. How much will the insurance actually cost me out of my monthly pay? And is it even worth it?

You'll be taxed on it at about 51% . If the 4000 is the gross premium , you will get 500 back as a tax credit .

Stheno

Greentree_uk wrote: »

Hi, I'm sorry if this has been asked before but I was hoping someone could lay down how much health insurance will actually cost me?


My new employer offers it but I haven't decided to take it yet, myself, my wife and my daughter are all pretty healthy. So don't have many medical bills so far.

Lets start with an example. Say my work is prepared to cover myself, my wife and my daughter for. €4000. My salary is €70k and my wife doesn't work. How much will the insurance actually cost me out of my monthly pay? And is it even worth it?

You'll pay €170 per month in tax.

If you bought it privately, you'd pay 333 per month out of your net income.

Greentree_uk

Stheno wrote: »

You'll pay €170 per month in tax.

If you bought it privately, you'd pay 333 per month out of your net income.

What about the tax relief? Does that reduce it again?

DmanDmythDledge

Greentree_uk wrote: »

What about the tax relief? Does that reduce it again?

Correct - the tax relief on medical insurance premiums is a benefit that individual should receive, even if it is paid by an employer on their behalf.

The tax relief per adult is limited to €200 p/annum (max limit €1,000 @ 20%) and the tax relief per child is limited to €100 p/annum (max limit €500 @ 20%).

Greentree_uk

So we're saying that it should cost me Around €1500 per year? If I build in the savings of the gp then it could be around €1200 per year?

Yellowledbetter

Sorry for getting slightly away from the OP here but I have a sort of related question. My employer pays VHI for myself and my wife annually to a value of approx €2400 which I receive tax relief at source. My question is,can I still claim a refund of the BIK paid on this?

DmanDmythDledge

Why would you get a refund of the BIK paid? I can't see how or why you should.

Yellowledbetter

DmanDmythDledge wrote: »

Why would you get a refund of the BIK paid? I can't see how or why you should.

I'm not saying I should but some people in work have claimed a refund for BIK paid. I requested a statement from payroll detailing my BIK paid over the past 4 years and even they suggested I am entitled to a refund at 20% for BIK paid

relax carry on

Yellowledbetter wrote: »

I'm saying I should but some people in work have claimed a refund for BIK paid. I requested a statement from payroll detailing my BIK paid over the past 4 years and even they suggested I am entitled to a refund at 20% for BIK paid

If your employer is paying your Health Insurance on your behalf then you are not getting tax relief at source. You can claim for the tax relief you would have received automatically if you had paid it yourself. You need to find out how much was paid by your employer over the last 4 years and submit a claim to Revenue.

Please note you may have already received this relief in the form of additional tax credits over the last few years as some employers were automatically informing Revenue of the amounts paid. Check your prior year tax credit certs to see if that additional credit is there.