Health: Private Medical Insurance

Lord Walton of Detchant Excerpts

Monday 15th November 2010 Lords Chamber

Asked By

[Lord Walton of Detchant]

To ask Her Majesty’s Government whether the imposition of fixed fee schedules and restricted hospital and consultant networks for the provision of services to private medical insurance subscribers, as now practised by the two principal insurers in this field, is in the public interest.

[Lord Walton of Detchant]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as a policyholder with AXA PPP.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, private medical insurers are entitled to offer policies on a variety of terms and offering different levels of benefit. The Financial Services Authority’s Insurance Conduct of Business Sourcebook does not prevent insurers restricting choice of healthcare provider. However, it does require that the insurer provides information on any such restrictions. Provided that policyholders are covered as they expect in the event of a claim, this is to the benefit of consumers as cost control serves to keep premiums at an affordable level.

[Lord Walton of Detchant]

I thank the Minister for that reply. Is he aware that the Office of Fair Trading is receiving a large number of complaints from individuals who believed that they had fully comprehensive healthcare insurance with organisations such as BUPA and PPP but are now finding in many instances that their recovery is only partial, that they are restricted in the choice of consultant to whom they may be referred, despite their GP’s advice, and also that they are not allowed to go to certain hospitals? Is this not contrary to the policy that should be carried out, and is the Minister aware that last week my noble friend Lord Crisp said that private healthcare insurance was becoming a lottery, and that the Financial Services Authority should examine the matter in the light of these complaints?