How can PMI reduce the strain on the NHS?

We all read about the problems in the NHS: funding, strain, stress, and suffering. But how can PMI reduce the strain on the NHS?

Private Medical Insurance (PMI) shouldn’t be seen as the enemy of the NHS. What if we could encourage more individuals and employers to engage with Private Medical Insurance, thus relieving some of the problems within our NHS?

I am old enough to remember Gordon Brown removing tax relief on PMI premiums for those over 60. We can guess what happened – those, who statistically are more likely to need the NHS, stopped their policies at renewal. Uhhmm!

Could we reintroduce this tax relief? It would certainly make sense to encourage this age group into or back into PMI.

Then we have Insurance Premium Tax, currently sat at 12%, on insurance we deem to be already paying for through our National Insurance. This is always a bone of contention, along with the P11D contribution levied on employees who have an employer kind enough to put PMI in place. So, surely the government should look at this and reduce taxation to encourage both the individual and the employer to take out PMI policies. It doesn’t appear to be rocket science does it?

I was reading an article recently which suggested the Government could contribute to Group PMI premiums for three years. 30%, 20%, 10% was suggested. It was also reported that once Group PMI had been initiated it was rarely withdrawn. Surely any of these areas would encourage greater uptake and appetite for PMI.

The knock-on effect for the beleaguered NHS can only be positive, with reduced pressure and costs to the NHS, increased P11D revenue, and a more productive workforce. The really important part here is that the Government’s liability is manageable and limited and they will, of course, benefit in many ways going forward. With the increased pressure on employers to provide an array of Health and Mental wellbeing solutions, it is maybe time the Government acts sooner rather than later!