Medicash chief steps-up tax campaign
THE boss of Medicash, the Liverpool-based healthcare cash plan provider, is ramping-up her campaign for the Treasury to reverse a recent hike in tax on health insurance premiums.
Sue Weir, who claims insurance products should be exempt from Insurance Premium Tax (IPT), in the same way that life insurance, permanent health insurance and all other long term insurance products are exempt, has written to three major business groups to garner their support.
Weir argues the increase in the rate of IPT from 6% to 9.5%, which came into effect on November 1, could price many businesses out of providing healthcare arrangements for their staff due to rising costs, leading to significantly greater pressure on the NHS.
She has written to the Confederation of British Industry (CBI), Federation of Small Businesses (FSB) and Institute of Directors (IOD) for their support.
Last month, Weir told regional business leaders at the CBI North West annual dinner that she has written to Chancellor George Osborne outlining why IPT will seriously impact on the NHS and businesses in the UK.
She said the tax increase would also hit business productivity as absenteeism could increase if fewer employees are unable to access private treatment quicker.
Weir said: “This (issue) effects a lot of employers, large and small, and their employees, and as such I hope that business supports the call to make healthcare insurance exempt from IPT.”
In 2014 Medicash had a record year, with earned premiums rising to £21.8m from from £20.7m.
