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Quarter of a million hit by PMI tax relief axe

A quarter of million people are missing out on health insurance because of the decision to axe PMI tax relief for the elderly, according to PPP healthcare calculations.


Chancellor Gordon Brown removed the relief from the over 60s in his first budget in 1997 reversing the Conservative policy.


PPP healthcare managing director Mark Adams now wants to nail the “mistakes, misrepresentations, half-truths and distortions” of recent weeks including claims the private sector “cannot help the elderly” and that the removal of relief has not damaged coverage.


Private health insurers are becoming increasingly strident in calling for talks with the Department of Health over the NHS crisis.


PPP wants to bring togeth er insurers, politicians and NHS professionals to look for solutions in the next few months.


Prime Health managing director Mike Hall says the Department of Health, under both political parties, has repeatedly failed to talk to the private sector.


Prime is eager to develop solutions such as tax exempt healthcare Isas to run alongside existing Isas and insurance policies covering less urgent conditions with the NHS covering core conditions.


In a statement PPP says: “Withdrawal of tax relief has had an effect on customer levels. We calculate that privately insured numbers are now a quarter of a million less than they would have been.”


Hall says: “There have been no meaningful talks despite many requests from the private sector to the Department of Health.”

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