HL Deb 21 July 1997 vol 581 cc1192-4

2.53 p.m.

Baroness Cumberlege

asked Her Majesty's Government:

What is their policy towards private health insurance.

Baroness Jay of Paddington

My Lords, private medical insurance is not a matter for government policy but of individual, personal choice. As an individual representing the Government in this House, I can say that I have complete confidence in the excellent care provided by the NHS.

Baroness Cumberlege

My Lords, I thank the Minister for that rather short Answer. However, can she say how the first part of her answer squares with the announcements made by her right honourable friend the Secretary of State for Health that he intends to sack chairmen and non-executive directors of trusts and health authorities who have private health insurance? Further, can the Minister say how this Labour ideology leaves the 14,000 NHS doctors who have private health insurance? Are they also to be sacked and, if not, why not?

Baroness Jay of Paddington

My Lords, the Government believe that those people in positions of responsibility for the governance of the health service should indeed put their faith in the health service, as I have done. The position of individual medical practitioners who are not employed by the health service may be different.

Lord Wigoder

My Lords, as a former chairman of BUPA, perhaps I may ask the Minister whether she is aware—and I am sure she is—of the innumerable occasions over the years when the professionals, not the politicians, working in the NHS and the private sector have co-operated together extremely happily to the great benefit of patients in both sectors, which is an important consideration. Does the Minister agree that the Government would do well to promote similar co-operation in the future?

Baroness Jay of Paddington

My Lords, I believe there has been effective co-operation between the NHS and private providers of healthcare, especially in some specialised areas such as, for example, long-term mental health problems. I believe that nothing I have said detracts from that.

Lord Winston

My Lords, does my noble friend agree that one of the problems with private health insurance is that the companies concerned frequently cherry pick in that they actually insure those things which are most profitable for them? Secondly, will my noble friend also agree that such companies often renege on their agreements in advertising; for example, in one case BUPA is particularly misleading in suggesting that people can see the doctor of their choice when that is not actually true because it depends on the quality of the insurance?

Baroness Jay of Paddington

My Lords, I thank my noble friend for drawing those problems to the attention of your Lordships. There have been particular concerns about elderly people and their problems with long-term medical conditions which, as my noble friend said, are sometimes not covered under their health insurance. They are, therefore, most worried when they find themselves afflicted with a long-term condition which is not adequately covered.

Baroness O'Cathain

My Lords, although the Government are ideologically opposed to private health insurance, will the Minister agree that the people who take up private health insurance are relieving the responsibility on the NHS and thereby helping resources? Would it be possible for the Minister to make an estimate of how much additional funding would be required for the NHS if private health insurance were abolished? Further, can she say how much more would that mean in terms of income tax or, indeed, in terms of other financial measures such as, for example, the abolition of dividends on pension funds?

Baroness Jay of Paddington

My Lords, with respect to the noble Baroness, perhaps I may, first, correct what she said at the beginning of her supplementary question; namely, that the Government are ideologically opposed to private medical insurance. As I said in my original Answer, we regard this as a matter of individual, personal choice. As to the calculation about what may or may not be the possible implications for the NHS, some rather alarming stories have been spread over the past few weeks about the impact on the NHS of, for example, removing tax relief. Of course, any additional expenditure would be dwarfed by the £1.2 billion extra given by my right honourable friend the Chancellor of the Exchequer in the Budget.

Lord Molloy

My Lords, will my noble friend agree that private healthcare has always been permissible even within the NHS? However, the fact is that the NHS is cast in the noblest mode of any party measure that has come before our Parliament; and, furthermore, our NHS is the envy of the world.

Baroness Jay of Paddington

My Lords, I am very happy to endorse my noble friend's views and I accept exactly what he said.