Award-winning health cash plan provider Health Shield has revealed that it will cover the insurance premium tax (IPT) rise for its cash plan members until 2017. It is believed that Health Shield is the first health insurance provider to make this type of announcement in response to the recent IPT increase.
In the summer budget Chancellor George Osborne announced a more than 50% increase in the rate of IPT from 6% to 9.5% and Health Shield has promised its premiums will not be affected by the rise for the next 17 months.
Health Shield Chief Executive, Jonathan Burton, said: “Following the recent 3.5% increase in IPT announced in the summer budget, Health Shield is pleased to announce that we will absorb the impact of the IPT increase for all members until the end of 2016. This means that our premiums will not be impacted by the IPT increase for at least the next 17 months.
“We are aware that insurance can sometimes be the first thing to be sacrificed when budgets are tight and so we believe this is the right thing to do for our members. While we cannot comment on any future changes the Government may make in regards to IPT, our members and brokers can be confident knowing that we will continue to do all we can to treat our members fairly.”