Fears white paper proposal could hamper PMI
The coalition Government's decision to turn its back on its 'preferred provider' policy could pose a threat to the private medical insurance (PMI) industry, according to the Association of Medical Insurance Intermediaries (Amii).
Health white paper, Equity and Excellence: Liberating the NHS, recently published by health secretary Andrew Lansley, included the proposal to permit "any willing provider" to deliver healthcare services.
While Michael Payne, general secretary of Amii, welcomed giving patients more choice over their treatment, stating that it was an opportunity, which could lead to an expansion in private hospitals and independent treatment centres, he added that it could threaten the PMI sector.
"The threat to PMI is people may start to think, 'if I can access private facilities through the NHS, why do I need private cover?' There is a challenge here for health insurers to come up with offerings that build on what the NHS can offer rather than seeing themselves as a replacement," he added.
Head of healthcare at Groupama, Alistair Sclare, said that due to the sheer size of the NHS, any eventual changes would happen gradually and that the industry would have time to adapt accordingly.
"Our role is to be there for people who want choice now. We still have a lot of work to do to convince the public of the benefits of PMI. Insurers have to unite to achieve this," he added.
The Government has now entered a period of intensive consultation following the publication of a number of documents to seek views on more detailed propositions. The closing date for submissions is 5 October and the Government has stated its intention to start offering more choice for patients from April next year.
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