Is tax attack on private heath cover in pipeline?

ROWING numbers of patients are giving up on the NHS and paying for private healthcare instead, but Labour may have a tax sting in the tail in the Autumn Budget. People are sick of waiting months, or even years, to be treated — with the latest NHS figures showing 7.4 million cases were still on the backlog in July.

- By Harvey Jones

Demand for private medicine is booming as a result. There were 939,000 private hospital admissions last year, the fourth consecutive year of growth, according to consultancy Broadstone. That's a rise of 15% since before the pandemic.

In total, 7.6 million people benefit from a private medical insurance (PMI) policy, either paying the premiums themselves or getting it from their employer. While PMI offers attractive benefits it has one major drawback — it doesn’t come cheap.

PEACE

Monthly premiums on budget plans can start from around £40 or £50, but comprehensive cover costs much more and rises steeply with age.

The average new premium in August was just over £91, figures from PMI broker Howden Life and Health show, but for older applicants it can easily climb into the hundreds.

The older you are, the more likely you are to claim. For the same reason, those with prior health issues pay extra. Medical inflation adds another headache as health costs typically rise faster than everyday prices.

Many are willing to pay the price for peace of mind. PMI offers rapid access to consultants, the freedom to choose hospitals, shorter waiting times and often better facilities.

Brett Hill, head of health and protection at Broadstone, said employers are particularly keen.