The British Insurance Brokers’ Association has said the NHS could benefit if the government provides tax breaks for people over 60 who take out private medical insurance.
The government should consider offering tax incentives for older people who purchase private medical insurance (PMI), according to the British Insurance Brokers' Association (BIBA).
Peter Staddon, head of technical services at the organisation, explained that by encouraging the over-60s to buy private cover, the government could take some of the stress off the NHS. He explained that the cost of the NHS is to reach £110 billion this year and could be £150 billion when the next government is elected - "which is an incredible rise".
He added: "If you encourage people with a tax break to take out medical insurance to pay for hip replacements and other procedures that will take a huge amount of pressure off the NHS, as those who live longer tend to be in poorer health."
However, a report released earlier this week by the Association of British Insurers (ABI) suggested that Britons are already turning to PMI, without the need of a tax incentive. The ABI found that 7,335,000 people were covered by PMI in 2008 - up 2.7 percent on the total for 2007.
Private medical insurer Bupa suggested that the rise in popularity of PMI was down to concerns over the hygiene in NHS hospitals, along with the high waiting times.
