This week, OAC was pleased to attend and support the Association of Financial Mutuals (AFM), including representatives of its membership, at an 'All-Party Group for Mutuals' meeting in Westminster, London, to discuss with parliamentarians the case for reducing Insurance Premium Tax (IPT) on mutual providers of health cash plans. Commissioned by the AFM to provide research into savings for the Welfare State from mutuality, OAC undertook further analysis for the meeting.
The original research by OAC was published at the annual AFM Conference in Stratford-upon-Avon in October last year which highlighted savings for the NHS, the Welfare State and to employers and individuals, through the provision of mutual health cash plans, private medical insurance policies and income protection policies.
Last year, IPT increased to 12% and generated £33m for HM Treasury from health cash plans. With increases in IPT over recent years, the mutual sector has been challenged with a significant loss of business. An increase in new business from a reduction in IPT would not just see a positive impact on access to health services and investment within the mutual sector but could see savings to the Welfare State well-beyond revenues generated from IPT.
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