The government’s £6.6bn additional funding for the NHS over the next two years will have little impact on spiralling demand for private medical insurance (PMI).
This is according to advisers Health & Protection spoke to following chancellor Jeremy Hunt’s announcement of a further £3.3bn for the NHS in each of the next two years.
Steve Ellis, associate director at Prosperis, told Health & Protection while on the surface the chancellor’s move was positive for the NHS and generally welcomed, NHS management and unions may see the funding as not enough.
“It is though I believe a step in the right direction allowing PMI and the NHS to work to make the nation healthier,” he said.
“At least in the short to medium term this will have little effect on the demand for PMI, as the backlogs and required improvements to NHS staff numbers and infrastructure will take many years to show improvement.”
Association of Medical Insurers and Intermediaries (AMII) chairman Dave Middleton (pictured), told Health & Protection while any additional spend in the NHS was welcome it would be interesting to see what areas this would be allocated to.
“Time will tell whether this will reduce waiting lists,” Middleton added.
“Our membership is still reporting increased demand and I don’t envisage this changing in the short term.
“Better outcomes for citizens and value for taxpayers is a good objective but it will take more than one Autumn Statement to achieve them.”
The King’s Fund chief executive Richard Murray said the additional £3.3bn funding for the NHS budget was important recognition from the government that the health service was on its knees.
“However, with NHS funding on a knife-edge, it will force the service to focus solely on its top priorities and go further on an already ambitious efficiency programme,” he said.
Murray added: “While it appears capital funding is protected in cash terms with inflation at 11.1%, the government will not be able meet its plans to maintain and improve NHS buildings, equipment and IT and will need to cut back its ambitions.”