Every general election brings a lot of change to the UK. Whether the current ruling party remains in power or a new party takes charge, there is a burst of activity where new policies and budgets are announced as the five-year government cycle begins.
Labour’s landslide victory brings with it a high level of expectation that a lot of changes will take place in the UK. Everything from energy security to football regulation is on the table. So how will the change in government affect private health insurance? What can consumers expect from the new regime?
Labour’s position on private medical insurance
One of the new government’s big challenges is to tackle the crisis in the NHS. Long waiting lists and a degradation in the quality of treatment have put a lot of pressure on the public healthcare sector.
Wes Streeting, the newly-appointed Secretary of State for Health and Social Care, has repeatedly stated how he plans to use the private health sector to help repair the NHS. That will involve outsourcing to private healthcare providers.
While that means there will be a greater demand on the private healthcare sector, this shouldn’t have any impact on private medical insurance in the UK. In fact, this could result in increased investment into the private healthcare sector, resulting in more options and better services available.
What could the government do to help private medical insurance policyholders?
The link between health and productivity should not be ignored, and private health insurance offered by companies can be a great way to keep their workforce happy, healthy and productive. The new government has pledged not to raise taxes, but a cut to insurance premium tax (IPT) could be beneficial.
Inflation and rising costs have been passed onto the consumer by private health insurance companies. Andrew Lawson, Director of Clarity Health Insurance, says; “Lowering the IPT could help mitigate the rising costs of PMI and provide relief to existing schemes.”
In short, if the tax is reduced, then this would positively affect prices and affordability and allow more companies to take up group health insurance as an option for their workforce.
What effect will the election have on private medical insurance?
The new government will have no immediate impact on the private medical insurance sector. It will take a while for any changes they put in place in the NHS to have an affect on the length of treatment waiting lists and the overall quality of care. Consumers seeking speedy access to quality healthcare will still see private medical insurance as one of the best options to take.
In fact, despite price rises across the sector due to the rate of inflation, the number of consumers in the UK opting to take out private health insurance has increased over the past few years. The increasing number of options available and the quality of care available through private medical insurance will continue to be an attractive option for the UK public, no matter if the prime minister wears a red or blue tie.