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Aisling
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Speak with Aisling for clear, personal guidance with your insurance enquiry. She will be happy to help you find the right next step.
Can My Company Pay for My Health Insurance in Ireland?
Can your company pay for your health insurance?
A company can pay medical insurance premiums for an employee or director, subject to the applicable arrangements and tax rules. It can also contribute to an employee scheme. The fact that the company pays does not make the medical benefit tax-free.
If you are considering running health insurance through your company, first compare the medical cover you need, then have the funding and payroll treatment confirmed. Dooleys can help with the insurance review while your accountant or payroll adviser confirms the tax position.
How Benefit-in-Kind fits into company-paid cover
Revenue treats employer-paid medical insurance as a Benefit-in-Kind. Its guidance identifies Income Tax, PRSI and USC on the gross premium under the applicable rules. The net amount invoiced after relief should not automatically be treated as the taxable value.
An eligible employee may be able to claim Medical Insurance Relief from Revenue. That relief has conditions and limits, and payroll taxation does not necessarily mean the employee has already received the relevant relief.
Ask for a clear breakdown of the gross premium, any Tax Relief at Source, the employer contribution and any amount paid personally. Your adviser can use those figures to explain the company and employee position.
Keep these decisions separate
| Decision | What to establish |
|---|---|
| Medical cover | Hospitals, benefits, excesses and waiting periods appropriate to the insured members. |
| Funding | Whether the company pays all, part or none of the premium. |
| Payroll and tax | The gross benefit, employee contributions and applicable Revenue treatment. |
| Administration | Who joins, who pays for dependants and what happens when employment ends. |
Company directors, owner-managers and families
For an owner-manager, personal and company budgets may be closely connected, but they are still different parts of the decision. A company-funded plan does not automatically include stronger medical benefits than an individually paid policy.
If a partner or children are included, check their plan, premium and the treatment of any company contribution. Do not assume that the company’s decision to pay for the director also establishes an agreed family benefit.
A sole trader should not assume the same company-and-employee structure applies to their personal premium. Obtain advice on the actual business status before describing a payment as a company-funded employee benefit.
Choosing a plan before choosing the payment route
Compare hospital access and the amounts members might pay when claiming. An inpatient excess, day-case excess or procedure-specific contribution can matter even when the employer is paying the full premium.
Review optional outpatient, maternity, mental health and dependant benefits on their actual terms. A business funding decision should not lead to a policy that ignores the insured person’s existing cover, planned care or preferred hospitals.
A practical checklist for your company
- Identify the employee or director and any dependants to be insured.
- Gather current plan and membership details, if applicable.
- Set the proposed company contribution.
- Compare suitable Irish Life Health options available through Dooleys.
- Give payroll or your accountant the premium and contribution breakdown.
- Confirm policy commencement, payment and employee communication before proceeding.
What happens if you leave the company?
Company funding and policy membership may end on dates determined by the arrangement. Confirm whether direct-payment continuation is available and what the personal premium would be.
Include family members in that discussion. A change in who pays should be managed before the old arrangement ends, with any waiting-period or continuity implications checked with the insurer.
Frequently asked questions
Can a limited company pay a director’s premium?
An arrangement can be made, but the applicable Benefit-in-Kind, payroll and tax treatment must be confirmed.
Does the company paying make health insurance tax-free?
No. Company-paid medical cover is generally a taxable benefit under Revenue’s rules.
Must we buy a plan labelled corporate?
Do not choose by label alone. Assess the medical policy, membership availability and funding arrangement separately.
Can Dooleys guarantee a tax saving?
No. We help assess the insurance options. Your accountant or tax adviser should evaluate the funding decision and any tax outcome.
Health insurance advice in Naas, Kildare, Dublin and Meath
Dooley Insurance Group supports individuals, families and employers in Naas, across Kildare, Dublin and Meath, and throughout the rest of Ireland. Our offices are in Naas and Edenderry, with a dedicated health insurance contact to help you understand the next step.
For medical insurance recommendations, we review suitable options through our Irish Life Health appointment, as set out in our Terms of Business. We can compare your current cover with those options and explain the scope of our advice, benefits, costs and any limitations before you decide.
Related guidance
Sources and further information
Speak to Aisling about company-paid health insurance
Contact Aisling O’Connor on 085 851 4492 or email aisling@dooleyinsurances.com. Tell us your current plan and renewal date, if applicable, together with the benefits or questions you want reviewed.
We will explain what information is needed for your enquiry. Do not send detailed medical records with an initial message. Policy benefits and claim decisions remain subject to the insurer’s rules and confirmation.
Dooley Insurances Ltd t/a Dooley Insurance & Mortgage Brokers and Dooley Insurance Group is regulated by the Central Bank of Ireland.
