Private health insurance row brews in Britain

Press, 18 February 1983, Page 29

Private health insurance row brews in Britain

NZPA staff correspondent London A row is brewing between the British Government and trade unions over reports that Britain's 650,000 civil servants are to be offered private health insurance at discounts of up to 50 per cent. The Government is about to invite civil servants to join private health insurance schemes at specially negotiated rates, according to the reports. This follows up an agreement between the Government and the three main private health groups — 8.U.P.A., Private Patients' Plan, and Western Provident Association. The groups all give discounts to schemes involving a number of members and the high discounts civil servants are likely to get would be possible because of the large number expected to take advantage of the offer. Treasury officials have been negotiating for special terms since last year when the Government offered them as part of its pay offer to civil service unions.

But the unions rejected the

idea of private medical insurance.

The Treasury said the Government considered its employees should have the same facilities as were available in the private sector. The Government will not be subsidising the scheme and it will be up to individuals to join or not. But unions claim it will undermine Britain’s National Health Service by giving a boost to private medicine. The private health groups say the scheme for civil servants would lead to a direct reduction in N.H.S. hospital waiting lists. Many people have to wait years before they can get a bed in a public hospital and an increasing number are turning to private schemes. "There is no doubt that this scheme will take a major load off the health service and will have a direct impact in shortening the waiting list," a B.U.P.A. spokesman said. “It is potentially the largest group we will have and will bring down the cost of health insurance to a married man in his early 40s with two children to about V

17 (SNZ36) a month

Members of private health groups still have to pay the N.H.S. charges which are also paid by employers. A Treasury spokesman said. “It has been common practice for years for private industry to obtain discounts for employees wanting health insurance by virtue of the numbers involved in the company. “This scheme is extending to the public sector what has been available to the private sector for many years." But there was an angry reaction from Mr Albert Spanswick. General Secretary of the Confederation of Health Service Employees, who said. “It is yet another bitter blow to the N.H.S. from a Government determined to undermine the service at every opportunity. “It is disgraceful that the Government should act as a free advertising agency for private medical schemes and that Ministers should have been negotiating to increase the profits of private medical insurance companies." he said. The Prime Minister. Mrs Thatcher, replying in Parlia-

ment. to the Leader of the Opposition. Mr Michael Foot, said that civil servants were free to spend their money as they chose.

She stopped short of confirming that the scheme would go ahead, but said. “Whether we are proposing to circulate them or not, civil servants, like other people, are free to spend their money as they choose.”

Her Government had spent more on health than the previous Labour Administration, she said.

"Fortunately under this Government we still have a free country and people are free to spend their money on private health if they wish to." said Mrs Thatcher.

At the end of. last year more than 1,370,000 people had private medical insurance through their companies, more than twice the number subscribing to schemes as individuals.

About .4.2 million people, including dependants, were covered by private medical insurance, about one in 14 of the population.