§ Mr. RedwoodTo ask the Chancellor of the Exchequer what progress has been made in deciding what treatments will be permitted under private medical insurance contracts which will be eligible for tax relief from 6 April 1990; and if he will make a statement.
§ Mr. Norman LamontI am pleased to be able to announce the Government's decisions.
Our intention is that a comprehensive range of treatments will be permitted under private medical insurance contracts which attract tax relief. Contracts will therefore be permitted to cover charges for medical and surgical procedures (including diagnosis), the purpose of which is the relief of illness or injury, given or personally controlled by a registered medical or dental practitioner in the United Kingdom. Contracts may cover charges or fees, consequent on such procedures, for nursing (including home nursing), physiotherapy, speech therapy, chiropody, equipment, drugs, dressings, prostheses, hospital accommodation, other hospital services, transport, and convalescence in the United Kingdom for up to 14 days after an operation. Specialist fees and theatre fees will also be covered.
In addition, contracts will be permitted to cover GP operations, including associated drugs, dressings and so on, but not subsequent prescriptions.
The following will not, however, be permitted: "alternative medicine", dental procedures carried out in a general dental practice, general ophthalmic procedures not carried out in hospital, any medical or surgical procedures (other than GP operations) not carried out on an in-patient, outpatient or day patient basis, and cash benefits (except sums of up to £5 per night during private in-patient treatment).
Regulations giving effect to these provisions will be laid before the House in the autumn.