Private health Insurers to be reported to FSA by Lords

Concerns over the conduct of health insurers are to be reported to the FSA by Lord Sassoon, the Commercial Secretary to the Treasury.

The move is in response to a question by Lord Walton, a former General Medical Council chairman, on; "whether fixed fee schedules and restricted hospital and consultant networks...were in the public interest".

The question is an escalation of a dispute within the private healthcare market between consultants and insurers over insurers' plans to implement fixed fee schedules and demand data consultants feel will have a detrimental effect on patient care and choice.

Following the question, peers from all parties expressed concerns over the lack of transparency and clarity within some insurance policies. In particular, AXA PPP and BUPA were highlighted by Lord Walton as being the biggest offenders.

Speaking in the House of Lords Lord Sassoon said he was "happy to convey to the Financial Services Authority the points that have been raised this afternoon."

The Federation of Independent Practitioner Organisations (FIPO), representing medical organisations has sought the views of its members and found an overwhelming concern for patient choice and continuity of care, amid claims the proposed plans by Britain's biggest insurers looks to erode this.

Geoffrey Glazer, chairman of FIPO, commented: "With complaints to the Financial Ombudsman and FSA increasing, more and more patients are unaware of the restrictions in their policies until they come to need them although not all insurers are involved.

"Our members are concerned about the impact the proposed changes will have on patients at a time when they are extremely vulnerable. In light of the comments made in the House of Lords, FIPO and its members hope the FSA will look at the issue more closely. We firmly believe that choice should be in the hands of the patient and care in the hands of doctors and will work hard to uphold this belief."