Medical intermediaries slam IPT hike

Medical intermediaries have slammed the government’s insurance premium tax hike in last week’s Budget.

At its annual conference, the Association of Medical Insurance Intermediaries (AMII) said the increase in IPT from 5% to 6% would increase pressure on the NHS by discouraging people from taking out private health insurance.

AMII general secretary Michael Payne said, “Although the government has made a commitment to maintaining NHS front line services, British Medical Association research this week has shown many NHS organisations are already facing potentially devastating cuts to jobs and services with long-lasting consequences for the NHS and patients.

“Every treatment made in the private sector helps relieve pressure on NHS resources. So an increase in IPT and the cost of medical insurance will result in some people being deterred from continuing with or taking out such insurance for when they need medical treatment and if that happens they will remain totally reliant on the NHS.

“This IPT decision shows once again that Government departments cannot work together as this decision made by the Treasury has far reaching consequences for the Department of Health.”

The AMII also criticised the Budget announcement that National Insurance rates on benefits-in-kind, including medical insurance premiums paid on behalf of employees, will be increased to 13.8%.

It said the Treasury’s move went against efforts by the Department of Business Innovation and Skills to encourage employers to play a greater role in boosting their staff's health and well-being.

Payne said: “We hope the Chancellor reviews this particular tax rise before the Finance Bill is passed and withdraws the planned increase. It makes no sense to Britain’s economy, no sense to the NHS, and no sense in encouraging individuals to take greater responsibility for themselves and in this instance their medical treatment and wellbeing.”