Industry bodies from across the health and protection sector are planning to respond to government’s call to make the case for tax relief on private medical insurance (PMI) provided though the workplace.
Last week HM Treasury published a consultation specifically seeking views on how expanding the existing Benefit in Kind (BIK) exemption for medical benefits could help employers provide more services.
Ahead of the Spring Budget, the Association of British Insurers (ABI), the British Insurance Brokers’ Association (BIBA) and the Association of Medical Insurers and Intermediaries (AMII) all called for tax breaks for employers offering PMI.
Planning to respond
While those calls fell on deaf ears, two of those three bodies told Health & Protection they planned to respond to this latest consultation and make the case again.
An ABI spokesperson said: “We and our members share the government’s goal of improving the health of the workforce and will be responding to its consultations on how to widen access to high-quality health provision in the workplace.
“Health and protection insurance plays a key role in keeping people fit, healthy and in work through the services it offers, such as online GPs, physiotherapy, and mental health services. Barriers to uptake, such as high taxation, need to be addressed.
“Our recent survey report shows 54% of respondents think employers should get tax incentives for offering insurance benefits to employees.
“We look forward to working with government to boost workplace health, grow the economy and help reduce the pressure on the NHS.”
AMII also said it would be responding to the consultation.
“With the well documented issues within the NHS any tax incentives to increase membership of corporate plans can only be a positive thing,” the association added.
However, BIBA was more hesitant.
It told Health & Protection that it will only consider responding before the 12 October deadline if it can establish any further new economic arguments from market participants over and above those put forward in its 2020 manifesto.