Is taxation the straightforward solution to re- vitalising the NHS, and how might this impact on the PMI industry?
Huge sums of money are needed to rebuild the health service and it is likely the sustained invest- ment required to meet the future demands of the NHS will not be met by taxation alone. For healthcare funding to work smarter, private spending should constitute a higher percentage of the overall spending on healthcare.
A system which predominantly relies on taxation for its funding is focused on a limited tax base and is subject to economic cycle fluctuations. Such a system could suffer during an economic downturn as other public spending rises, for example unemployment benefit, and tax receipts fall. Additional sources of funding protect the continued investment in health if they are combined with taxation.
There is no quick fix, but a strong mixed economy, combining public and private funding, would further enable UK healthcare to meet people's expectations in the 21st century. The targets set in the NHS Plan should be welcomed by every citizen, and it is imperative we work together to achieve them.
It is hoped in the future that we will see the PMI industry working closer with the public sector with one goal in mind ' to ensure this country has the right combination of funding initiatives to guarantee a comprehensive, cost-effective and reliable national health service.
The PMI industry can make a significant contribution to the future healthcare of this country in terms of providing relevant products, a choice of different options tailored to individual needs and excellent customer service standards. There are many models of insurance available to deliver the objectives of access and equity the Government may require.
Mike Hall
