Proposals encourage consumers to part-fund their own healthcare
PMI providers have shown their support for proposals set out by Dr Liam Fox MP, Shadow Secretary of State for Health, in his speech at the Conservative Party Conference. The insurers believe the plan to encourage consumers to self-fund their medical treatment should give customers more control over their treatment choices.
In his address, Fox said the NHS had to become less politicised and called for greater professional freedom for NHS staff and greater choice for patients. He attacked Labour's approach to the NHS, adding the Government had an 'obsessive target culture' and distorted priorities.
Dr Adrian Bull, medical director at AXA PPP healthcare, said the Government's focus on funding solely through tax-based initiatives is short-sighted. 'No other Western country successfully funds their health service through taxation alone,' he said. 'The proposal from the Tories shows they are opening up a debate that has been missing for some time. That is how both tax-based and private funding are integral to the health system.'
Fox used examples of the healthcare systems in Germany, France and Denmark to highlight the archaic workings of the NHS. 'Gordon Brown says we have nothing to learn from Europe. His approach is blinkered. It is misplaced. It is arrogant. We have looked abroad. It has been an illuminating experience,' he said.
Referring to the health system in Finland where public and private sectors work together, Fox said there were lessons to be learnt from our European neighbours. 'In Finland,' he said, 'the State will contribute 60% of the standard public sector price of an operation, if patients choose to go outside State hospitals. I find that an appealing concept. Why should State-funded services have to be State-run services?'
Fox also showed support for the Australian system, which offers tax relief for those willing to pay for their own healthcare through private medical insurance. Commenting, Bull said: 'Tax incentive schemes have worked in Australia because private funding has been viewed as part of the solution. Private funding is important because a purely tax-funded system cannot meet the needs of those living in the UK.'
Mike Hall, chief executive at Standard Life Healthcare, also supported the proposal. 'The introduction of tax relief for those that choose to take out some form of health insurance would be a significant incentive, enabling more people to exercise their right of choice when it comes to healthcare. It would also reduce the pressure placed on the NHS.'
