The Conservative Party has pledged to give the self-employed access to cheaper private medical insur...
The Conservative Party has pledged to give the self-employed access to cheaper private medical insurance (PMI), should it return to power.
The proposal involves setting up a privately run organisation allowing the self-employed to pay lower medical insurance premiums - as if they were a member of a company scheme.
It would be made available to the four million self-employed workers in the UK, and could save them up to 40% on the cost of premiums.
The announcement forms part of a raft of new Conservative healthcare proposals that includes the creation of a new, unified regulatory body responsible for the standards of patient care in both the NHS and the private sector and the removal of tax penalties on companies who offer PMI.
Mandy Blanks, public relations officer at Standard Life Healthcare, said: "We would welcome anything along these lines because it would help the market to grow, and that can only be good. It is an area where there is a real need for cover."
Western Provident Association (WPA), which is currently the only medical insurer to offer a policy specifically designed for the self-employed, welcomed the move.
David Ashdown, corporate communications director at WPA, said: "The self-employed recognise the advantages of going private, but our claims experience shows that there is a different pattern between them and the employed.
"They cannot afford to be ill and they are more positive about their health because it affects their business if they are off work for long. This keeps their premiums down."
However Louise Zucchi, media relations manager at Norwich Union, said: "There are a number of issues surrounding the principle of such an affinity scheme. If it was not mandatory then there might be a low take-up and you would need a good mix of policyholders if you are to keep premiums down. But if they all signed up then they could get a good deal."
The proposals follow calls by the Tories earlier this year, for a dramatic overhaul of PMI to make it accessible to more people through public-private partnerships.
