NUH supports new health model

A new model of UK healthcare provision, modelled on successful elements of the German, Spanish and Dutch systems, is being put to the Government by Norwich Union Healthcare.

The model, developed with international consulting firm National Economic Research Associates (NERA), is expected to be debated at a fringe meeting of the Labour Party conference on 3 October, held by Norwich Union Healthcare (NUH) in association with the Social Market Foundation, the independent think-tank.

The proposal, named Stakeholder Healthcare, involves a partnership between the public and private sectors and NUH believes it makes use of existing and unique advantages of the NHS.

The NHS would remain as the provider of healthcare, but in addition it would also act as an insurer, along with other private health insurers and would compete to provide a standard package of services. Premiums would vary between insurers with competition on price and quality.

Individuals would pay their chosen insurer a premium based on community ratings. Health factors would not be taken into consideration. Central funding would subsidise premiums if necessary and pay for the unemployed, disabled, or those on benefits.

An independent body would distribute funds to the insurers, according to risk, removing the preference for healthier or wealthier clients and would oversee the funding of the system. Insurers would be obliged to accept all applicants. But could offer services outside the standard package of care, charging a risk based premium.

Edward Bramley-Harker co-author of the report, said: 'The aim of the report is to stimulate debate, it is one of the possible ways forward, depending what happens within the NHS. There are a few other alternatives that get bandied about, but as far as I am aware this is the first time someone has set down a structured proposal. The document is more a conceptual idea and the detail needs to be worked out, this is something to build upon through open discussion.'