BMA plans to increase GPs' report fees

The Association of British Insurers (ABI) is still locked in talks with the British Medical Association (BMA) over a planned increase in the cost of medical reports, which would lead to an increase in protection premiums, writes Ben Marquand

The ABI had a long-standing agreement with the BMA over the cost of medical examinations, and medical reports from GPs that restricted the costs per report to around £42 and £30 respectively. However, the agreement expired in March this year and since then the pair have been negotiating new fees.

It is thought that the BMA is trying to double the cost of a GP's report and increase the cost of a medical examination report by more than three times the current fee, because the fees charged did not reflect the level of work required in processing the reports. However, the ABI is looking to negotiate a compromise figure.

Suzanne Moore, spokesperson for the ABI, said: 'Discussions are still ongoing, but we are hoping to finalise a deal as soon as possible. We want to make sure that everything is done properly so that everyone is happy with the outcome.'

The ABI estimates that between 800,000 and one million reports are supplied each year, which costs the protection industry over £30m per annum. If the increases go ahead, there are fears that premiums would have to rise to cope with the extra costs.

Roger Edwards, product marketing manager at Scottish Provident, said: 'It is a difficult issue for those who sell protection insurance. If a provider is processing, for example, 70 to 100 medical reports a week at a cost of around £30 per report, the costs can be accounted for.

'However, if the cost doubles the implication could be that the cost of products would have to go up. In such a competitive market it may be difficult to do this. Conversely, if they do go up, it could have a positive effect, because it may force providers to look at new and innovative ways of getting medical records and evidence,' he added.