Chancellor George Osborne today unexpectedly announced that from November 2015 the standard rate of Insurance Premium Tax (IPT) will increase by over 58% from 6% to 9.5%.
This increase will further put into question the provision of quality Private Medical Insurance (PMI) by UK companies as it comes at a time when many have already experienced large annual increases in their on-going PMI premiums.
Barnett Waddingham are advocates of trust based medical cover owing to its greater freedom and flexibility and importantly its exemption from IPT. We have widely commented on a need for companies to utilise their entire health related benefits and alongside this we have created our BWell intervention pathways to make better use of employee assistance programs, income protection rehabilitation and where appropriate the NHS to take burden away from PMI or trust based medical cover.
Our workplace health team would be happy to discuss our innovative health solutions and the implications of the budget announcement.
This blog post was written by Carl Chapman. For further enquiries please contact Damian Stancombe, Head of Workplace Health and Wealth.