In an open letter to The Chancellor of the Exchequer, Sue Weir, chief executive of Medicash, a leading UK healthcare cash plan provider, is asking for all healthcare insurance products to be exempt from Insurance Premium Tax (IPT), the same as life insurance, permanent health insurance and all other ‘long term’ insurance products.

The letter follows Weir’s call for this IPT exemption to The Chancellor George Osborne at the CBI dinner in Manchester on 12 November attended by 300 business leaders.

Her concern is that the latest increase in the rate of IPT from 6% to 9.5% which came into effect on 1 November could damage healthcare substantially in the UK with circa 6.5 million people with health cash plans and private medical insurance. Individuals and companies will be driven away from making their own healthcare arrangements due to rising and uncertain tax levels resulting in significantly greater demand on the already resources strapped NHS.

Weir said, “This is an important issue often forgotten or not known about that directly affects individuals, families and businesses, and which could impact on the cash strapped NHS.”

Download the open letter