Reductions in tax relief on health insurance premiums introduced in 2014 cost consumers €151 million that year, according to new figures from finance minister Michael Noonan.

Noonan restricted tax relief on private medical insurance from January 2014 to the first €1,000 for adults and €500 for children. At the time, Noonan stated that the tax measure would only impact “gold plated” health insurance policies.

The minister forecast that the restriction would increase consumer outlays on private health insurance by €94m through 2014, but in the event the extra tax yield was €151m.

Commenting on the figures, Fianna Fail finance spokesman Michael McGrath said: “We can now see that this measure was in fact a massive financial hit for tens of thousands of ordinary taxpayers who provide for their families well-being by taking out medical insurance. Older people were especially hard hit by this change. Even basic policies, which provide far less cover than those referred to by the minister, have seen their tax relief slashed.”

McGrath added: "The raid on private medical insurance policies was one of a series of very sneaky tax increases introduced by this government including the staggering €2.4 billion levy on private pensions, the abolition of the PRSI allowance for every worker and the massive increase in DIRT tax.

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“The overriding concern at all times was what they thought they could get away with politically. Raiding people’s pension savings or deposit interest and slashing tax relief on private medical insurance were considered acceptable on the basis that the full extent of the damage from these policies would not be fully exposed for many years.”

McGrath claims that thousands of people have been driven out of the private health insurance market directly as a result of government policy.

“This exodus has been halted in 2015 by the introduction of lifetime community rating. However this may only prove to be a short term reprieve given the announcement last year that the government has abandoned the idea of universal health insurance.

“After pursuing the policy for five years, this highlights once again the reality of a government that lacks any coherent strategy for delivery of improvements in health service,” McGrath added.