What is the function of the levy, if I may ask?
May ask? You should ask. As we all should.
The levy came in response to over-inflated estimates of unpaid medical costs of non-EU, short-term visitors/migrants. Called "medical tourism" by the popular press. It is usually represented by an African woman popping over on Easyjet to have a hip replaced or to give birth to quintuplets. See here:
http://www.dailymail.co.uk/news/article-2697892/One-14-new-mothers-maternity-tourists-182m-bill-births-short-term-migrants-visitors.htmlIt happens - though people who come for treatment come in all colours and sexes. Costs are very controversial, and politically biased....no one really knows. Estimates range from 30 - 300 million a year.
It turns out that upon looking into it, medical tourism actually generates mountains of money for the NHS. People come from all over the world, as Britain's best hospitals/doctors are truly among the best in the world. So they attract a lot of paying customers for all sorts of medical treatments.
It is complex. To truly get a grip on the admin/billing many new systems and tech will have to be developed and deployed.....the cost of which far exceeds the sums brought in from the levy. "New systems" is the feeding call for politically connected private consultants, all of whom seem to have Lord So and So on the board.
As to where the money will go....no one knows. Again in the grand scheme of things, levy funds represent maybe a brochure or a redesign of logos.
Nor will these levy funds address at all the issue of people flying in for a visit and needing treatment during their visit.
Nor will they do anything about overdue bills of EU Member State Citizens who use the NHS with their EU health cards. A lot of these bills go unpaid by their governments and are never cleared. I suspect that the UK has a habit of tossing bills from other countries generated by UK citizens while in say Spain, straight in the bin too. It's probably a wash.
But as to where the actual levy funds will go....again no one knows. The legislation says it will either be distributed to local management authorities to be used at their discretion for "front line services" - a term that no one wants to try and define, or tumped into the General Fund...which is the big tax pool used to fund everything from pothole repair, foreign trade junkets, to nuclear warheads.
Basically they just raised the visa fee by £200 and sold it poorly as a measure to help the NHS.