Three of the Irish health insurance companies say they will be forced to increase premiums next year.
Aviva, Laya Healthcare and GloHealth say it is impossible to absorb the increased stamp duty announced yesterday.
Laya, which insures nearly 500,000 people, says the increase in stamp duty will cost Laya between €20 million and €30 million a year.
It says it is simply not possible for the insurer to absorb an increase of that size, and the costs must be passed on to customers when the higher rates kick in next March.
Under the move the levy for adults will rise from by €49 from €350 to €399 - while the charge for children will increase by €15 from €120 to €135.
However there will be no impact on customers with basic levels of cover.
The largest insurer, VHI, will receive most of the extra money, as it has the largest number of older customers. It has welcomed the changes.
The Taoiseach has suggested health insurers could make savings themselves to prevent price hikes for consumers.
But as Enda Kenny came under fire from Fianna Fáil in the Dáil he said health insurers need to look at their own costs.
"How the insurance companies themselves can reduce their costs - why is it in 2013 we're still paying the same charge for procedures that used to take a long time and required days in hospital 20 years ago but can now be done in a relatively short time" he said.
"Like cataracts are now dealt with in 20 minutes; why is it the costs are still the same? What's going on here" he added.
The Irish Independent personal finance editor is Charlie Weston. He spoke to The Pat Kenny Show on Newstalk this morning.
