It has been revealed that health insurance costs will rise by up to a quarter from January, brining fresh bills in the New Year for many customers.

A healthcare group stated that its increases would vary from 8% to 25% depending on the scheme, number of adults, students and children protected.

The group has blamed the hike on Government taxes, which insurers have to pay for each adult on their files. Many sellers are claiming that the price will go down once the levy is removed.

The tax was enforced after the Government introduced tax reliefs for subscribers aged over 50 to ensure premiums remained affordable in the absence of risk equalisation.

Donal Clancy, general manager of the firm, said the levy was charged per adult whether they were on a higher priced plan or a low-cost plan.

“The levy represents 48pc of the premium for the cheapest product on the market and just 6pc on higher level plans,” he said.