Pmi PremiumPremium Pmi
Had the quota increased to the dreaded 12.5 percent, it would have increased by 108 percent in the last six month. Here, the Registrar raised the default IPT level from 9.5 percent to 10 percent, which is likely to bring in 700 million from the insurers over the next five years.
MacEwan said the insurer and consultant must minimise the effects of upside pressure on premium. "By talking to clients about what they expect from their policies, we can adjust the products, the advantages, the deductibles and the premium so that they get what they want and their medical coverage is appreciated," he said.
MacEwan said the firm had been reminding certain clients of their option when renewing. This includes Shared Responsibility, the co-payment method of EPA, which can cut bonuses by half while maintaining performance at the same level. Coverage also varies depending on where it is provided, e.g. whether they need premium clinics located mainly in London and activity level, with discounts on premium if a client is self-employed or work.
MacEwan said it was about effectively managing health strategies as a business has to pay an extra £25 on taxes (IPT and Employer's NIC) for every 1 it spent on health (claims, management and costs of insurance). Said he said ways to mitigate the effects of a further IPT raise included the use of equity capital trust for businesses that want to insure their systems themselves.
A further policy is the Company's retention, a financial instrument authorised by the HMRC to mitigate the effects of such an IPT. MacEwan said that retentions for the SME sector can cut bonuses in half while retaining services.