THE boss of a Bradford-based health insurer has briefed a city MP on key tax reforms the business wants to make cover more affordable.

Bradford South MP Gerry Sutcliffe visited Sovereign Health Care’s city base to hear from chief executive Russ Piper about its proposals for employees’ health care cash plans to be funded by businesses.

Sovereign is calling on the Government to no longer treat plans as a P11D benefit which required onerous administration. It also believes that Insurance Premium Tax should be scrapped for all cash plans, whether paid for by employers or individuals.

Sovereign says adopting its recommendations would make everyday health care affordable and accessible for more people and help ease pressure on the hard-pressed NHS and HM Revenue & Customs, which continue to suffer from staff and budget cuts.

Mr Sutcliffe, a former minister, agreed to provide advice and guidance on how Sovereign’s proposal could be communicated effectively to other MPs and ministers to build support.

Russ Piper said: “I explained to Mr Sutcliffe how the financial support our products provide encourages people to manage their health proactively, by easing the cost of staying fit and healthy. It’s no exaggeration to say that having a cash plan can be a lifeline for many customers, when it comes to affording their everyday health care. I also outlined how, unlike other types of insurance, our cash plans are designed to be used frequently. In addition, they’re community-priced, in that everyone is charged the same, regardless of age or medical history, and the premiums don’t increase if you use them. We therefore feel the current tax arrangements are counter-productive.”

He told Mr Sutcliffe that employers widely regarded the cost and time involved in administering the P11D requirements as unrealistic for such a low cost benefit and this was an often cited reason for not funding cash plans for employees.

Mr Sutcliffe said: “I understand fully why Sovereign is highlighting the P11D issue. Any obstacle to employers helping workers with the cost of managing their health should be looked at seriously and, if possible, removed.

“It was very interesting to hear more about Sovereign’s beliefs and the reasons behind them. I appreciate why the organisation holds these opinions and believe our meeting raised some important issues.”