Norwich Union Healthcare has proposed a public-private partnership for financing the National Health Service (NHS), whereby everyone would contribute "premiums" based on their level of income.
Everyone would be obliged to register with a health insurer of their choice and, in so doing, carry "stakeholder" insurance. Income tax would be reduced to accomodate these premiums. In a change for current private health schemes, insurers would be obliged to accept all applicants, regardless of their health.
The NHS would itself become a health insurer providing cover for the unemployed and those on benefits. Insurers, including the NHS Insurance, would buy services from the NHS and private hospitals.
All insurers would provide the same nationally agreed package of care but clients would be able to choose their insurance company and buy extra services if they wished. Competition between insurance companies would keep premiums low.
The plan is to be debated at a fringe meeting at the labour party conference on October 3, in the presence of Alan Milburn, the Health Secretary.
