Medicash, the UK healthcare cash plan provider, has stepped up its call for healthcare insurance products to be exempt from Insurance Premium Tax (IPT), in the same way that life insurance, permanent health insurance and all other ‘long term’ insurance products are exempt.
Sue Weir, Chief Executive Officer at Medicash has now issued a rallying cry to UK business by writing to the Confederation of British Industry (CBI), Federation of Small Businesses (FSB) and Institute of Directors (IOD) for their support.
Last month, Weir wrote to Chancellor George Osborne outlining why IPT will seriously impact on the NHS and businesses in the UK.
Medicash highlights the increase in the rate of IPT from 6% to 9.5%, which came into effect on 1 November, could drive many businesses from making healthcare arrangements for their employees due to rising and uncertain tax levels with the result of significantly greater demand on the already resources strapped NHS.
Also, business productivity across the UK will fall as absenteeism increases due to health issues and with this tax change there will be an unexpected negative impact on the long term economic wellbeing of the nation. By employees being able to access treatment more quickly recovery is speedier and the problem ultimately less severe.
Sue Weir says: “This effects a lot of employers, large and small, and their employees, and as such I hope that business supports the call to make healthcare insurance exempt from IPT.”