Moves to contain the cost of private medical insurance may lead to inadequate standards of healthcare, according to William Mercer.
The human resource consultancy said plans which provide cheaper premiums through restricted hospital lists may backfire on insurers and sponsoring employees.
William Mercer say legal cases in the US show these “managed health plans” were not giving patients adequate healthcare. Its survey shows 45 per cent of people covered by private health insurance participate in restricted hospital networks.
A William Mercer spokesperson says: “Its only a matter of time before UK insurers and employers could face some form of liability claims.”