Hospital claims £1.4m for health insurance policy cover
Health insurance companies have warned that the government is under pressure to boost their revenue as the costs of the NHS rise and the Government has no plan to raise taxes.
The Royal College of General Practitioners said hospitals were struggling to cope with the impact of the cuts to their insurance premiums.
It is a concern, said the charity, because hospitals are expected to cover up to half the costs for care in 2020-21.
“One of these is that the Government needs to be prepared to raise the threshold for covering NHS services to £1,500 a week or more. “
“This would allow hospitals to provide more and more care to their patients at the same time as reducing their costs and providing a lower level of patient-care for the wider public. “
“While this may be possible, the Government should consider how this might affect the cost of their insurance policies and, as a result, make clear whether they will provide additional support for hospitals in raising these premiums.” “
Hospitals will need to pay more than £4.5m to cover the costs, the RCGP said. “
While this may be possible, the Government should consider how this might affect the cost of their insurance policies and, as a result, make clear whether they will provide additional support for hospitals in raising these premiums.”
Hospitals will need to pay more than £4.5m to cover the costs, the RCGP said.
A spokesman for the Department of Health said the Government would “ensure that hospitals are prepared to pay for the full cost of any future cost increases that are incurred by hospitals”.
The Department for Health said hospitals could expect to pay up to £4,500 to cover their cost of care.
A report by the Royal College has warned that hospitals have a “firm grip” on the NHS budget, with many hospitals struggling to pay bills.
It says hospitals have been “strikingly underfunded” by the Government.
The RCGP says hospitals were underpaid for the past five years and the NHS was expected to “reach its peak level of care” in 2020.
The report warns the “tendency for hospital spending to fall” could mean the NHS will have to raise rates, which could also mean hospitals will need more money.
The number of NHS patients is set to fall by 2.4 million over the next five years, the report says.
The Government’s health service budget has been cut by more than 30 per cent, to £3.9bn.
It’s estimated there will be an additional £2bn of budget cuts over the period to 2020-22, and the cost could rise further.
This will mean that NHS spending is set for a 20 per cent decline in 2020 and a 32 per cent decrease in 2021-22.
It adds: “The Government’s planned NHS spending growth will result in an additional deficit of £10bn by 2020-20 and another £20bn by 2021-21.”
The RCGP said: “[This] will be particularly painful for the elderly, who are more vulnerable to the impact on their incomes.”
The group also warned the Government had “no plan to increase the NHS’s tax credits”.
The Government has committed to spending £1bn on health care by 2020, but is expected to cut the number of people receiving NHS funding by 10 per cent over the same period.