Insurance Premium Tax Backlash
The prospect of higher Insurance Premium Tax (IPT) is on the horizon. But with higher tax on medical premiums more policies could cancel and fewer policies could be taken out.
“The danger is that when businesses or individuals stop or downgrade their health insurance policies, they are solely reliant on the NHS for their healthcare needs. Including costly care and treatment for conditions such as cancer, heart and joint surgery which their health insurance policy would have covered.” says BUPA.
There are many industry supporters on the freezing of IPT increases. One of those is the British Insurance Brokers’ Association (BIBA):
“It’s our members’ view that current policy on Insurance Premium Tax is discouraging people away from choosing insurance. The more people and businesses that remind Government of the detrimental impact of IPT, the more difficult it will be for them to push through with any further increases,” commented BIBA chief executive Steve White, who welcomed Bupa’s report on IPT’s impact.
Concurring, Association of Medical Insurers & Intermediaries executive chair Stuart Scullion said the government should be encouraging the purchase of private medical insurance – “as a means of reducing the strain on an already overstretched NHS, not pushing thousands of people back on to it.”
Medical Made Easy’s View:
We should encourage more people to have private medical cover. This will go some way to reducing pressure on our overstretched NHS.
- So let’s not increase IPT.
- Remove the tax element on staff.
- Insurers should allow employees to pay their own premiums as a salary sacrifice
- Businesses should be incentivised more to establish schemes for their staff.
If interested in quotes for private medical insurance please give us a call or drop us an email – stefan@mmefs.co.uk
