The Association of Medical Insurers and Intermediaries (AMII) has backed an open letter to the Chancellor by the UK’s four largest health Insurers, which urges against further increases to insurance premium tax (IPT).
Stuart Scullion (pictured), AMII’s executive chairman, said the trade body is calling for an IPT freeze on healthcare premiums and subscriptions for the duration of this Parliament.
“AMII has been at the forefront of the demands for HM Treasury to conduct a fundamental review of IPT in the healthcare sector which we believe should be zero rated,” he argued.
AMII launched an IPT petition to gain 100,000 signatures in 2017 to ensure the issue was debated in Parliament.
The petition was closed early as a result of the snap general election and has not been re-launched because of the ongoing political uncertainty.
“There should not be a need for us to have to re-launch the IPT petition,” Scullion said. “I would hope HM Treasury can see sense in entering into a dialogue with those who have a strong interest in the impact of IPT increases, both for the NHS and consumers.”
The open letter, from the chief executives of Bupa, Aviva, AXA PPP healthcare and Vitality UK, argues that IPT is a “tax on acting responsibly”.
It warns that further increases could result in more people being reliant on the NHS for conditions such as cancer, heart and joint surgery, which their health insurance would have covered.
The standard rate of IPT has doubled over the last three years to 12%.