§ Mr. ChopeTo ask the Secretary of State for Health (1) why the maximum charges for the treatment of road traffic casualties by the NHS are to increase from 1 April 2003; [87553]
(2) what consultations have been held with insurers about the proposed changes in the level of charges for the treatment of road traffic casualties by the NHS in April 2003; [87563]
(3) what criteria were used to assess the appropriate level of increase in the charges in connection with the treatment of road traffic casualties by the NHS, set out in the Road Traffic (NHS Charges) Amendment No.2 Regulations 2002; [87554]
(4) what estimate he has made of the impact upon motor insurance premiums of the proposed charges set out in the Road Traffic (NHS Charges) Amendment (No 2) Regulations 2002; [87564]
(5) what changes in NHS income will result in 2003–04 from the Road Traffic (NHS Charges) Amendment (No.2) Regulations 2002. [87555]
§ Mr. Lammy[holding answer 16 December 2002]: Regulations to increase the tariff and cap for the recovery of national health service (NHS) costs following road traffic accidents were laid before Parliament on 11 December 2002. The regulations increase the tariff to take account of hospital and community health services (HCHS) inflation since 1997, which is the year the tariff was set. The regulations also increase the cap, as operational experience has shown 796W that this was set too low when the scheme was introduced in April 1999. The increased cap would still relieve insurers of the full cost of treating those seriously injured in road traffic accidents.
The Department undertook a consultation on the proposed increases, which ran for three months between July and September 2002. Departmental officials discussed the consultation and the proposed increases with members of the insurance industry and their trade bodies.
The increased charges would increase income to NHS hospitals by around £56 million per year. However, as NHS costs are not repaid until the accident victim's compensation claim settles, which takes on average 18 months, NHS hospitals would not feel the full effect of the increases until the latter part of 2004. If this cost was spread evenly among all holders of compulsory motor vehicle insurance, then the cost of the average policy could be expected to rise by around 0.7 per cent., or around £3 per policy.
The consultation on increasing the level of charges and summary of outcome can be found on the Department of Health's website at www.doh.gov.uk/consultations