Law firm Kennedys has slammed the government’s new guidelines on hospital attendance reimbursement.
The Department for Work and Pensions’ guidelines on The Health and Social Care (Community Health and Standards) Act 2003 stipulate that insurers should reimburse the NHS for the cost of innocent third parties’ hospital attendance in all personal injury cases, not just motor claims.
Kennedys partner Richard West commented that ultimately consumers will suffer as premiums rise.
He said: “The new rules extend the scheme to virtually all personal injury cases – not just motor, but employers’ liability, public liability, product liability and some cases where the claim arises from a disease. In a new development, claimants will be able to recover ambulance costs, including (it appears) the costs of ambulance transfers between hospitals. The current maximum compensation recoverable by claimants is £37,100, but it seems that this will be increased from 1 April 2007.
“Payments will now have to be made not just by insurers but by all compensators. Therefore, defendants who pay compensation personally or within their insurance excess will now be responsible for repayments to the DWP.
“Many in the insurance industry believe that this is another example of insurers and policyholders being targeted by government. Although it is attractive to argue that those who injure should contribute towards their victims’ medical expenses, such an approach is consistent with a state that relies on privately funded healthcare. In the UK, where accident victims have paid National Insurance contributions and are entitled to NHS treatment, this approach could easily be seen as a stealth tax. If insurers pay more, their policyholders will pay more.
“Motorists, who have no choice but to be insured, will continue to pay bigger premiums. Employees, whose employers will have to pay higher premiums, will receive lower pay rises. Residents whose local authorities have a higher claims spend will be charged a higher council tax.”
“In mitigation, insurers will be able to reduce payments as a result of the claimant’s contributory negligence. Insurers will have the right to seek a review of or to appeal against the charges. Such challenges will probably be based on contributory negligence arguments, or be made if the claimant has been treated for a pre-existing or accelerated condition.”
