The Health Minister will reportedly ask health insurers to put a two-year freeze on their prices to try and stop people giving up on their policies.

According to The Irish Times, the Government will promise not to increase taxes on the industry over the same period.

With over 280,000 people dropping their health policy since 2008, the government and insurers are concerned about the rapid decline in the market.

Leo Varadkar is now said to be seeking a deal with the health insurance firms. In return, the Government will pledge not to increase stamp duty on the insurers, which is the tax they are blaming for the price hike in policies.

The proposal will be discussed by the Cabinet in the coming weeks alongside a sliding scale of discounts for policies in order to get more in the 21-25 age group to sign up for health insurance.