Why private healthcare?
The UK is one of the few places in the world that has a universal free health service, so why would anyone choose to pay privately for medical care? According to a recent survey, the main reasons for going private were the fear of superbugs such as MRSA and hospital cleanliness, and a desire to avoid long waiting lists.
Private medical insurance (PMI) allows you to avoid NHS waiting lists and receive fast-track consultations and private treatment for short-term, curable medical problems. You are treated privately in an NHS hospital or in a private hospital.
What does health insurance cover?
Standard PMI plans cover essential treatments, including surgery, consultations, nursing and hospital care, but exclude treatment for drug addiction and incurable conditions. Comprehensive policies offer additional benefits, ranging from complementary medicine to personal accident cover.
There are three types of plan, fully underwritten, moratorium and Medical History Disregarded.
- Fully underwritten policies require you to disclose your full medical history to establish what will and won’t be covered.
- Moratoriums simply impose blanket exclusions on pre-existing conditions going back 5 years and will be excluded from the plan until the 3rd year providing there has been no re-occurrence or medical advice on the condition.
- Medical History Disregarded ignores previous health issues providing the applicant can sign the provider’s declaration.
For individuals or businesses moving from one provider to another there are also options to keep existing terms.
How much does PMI cost?
Premiums vary, depending on the level of cover you buy, your age and state of health (smoking does not affect the premium).
Your premiums will tend to go up annually to keep pace with medical costs and because the risk of illness increases with age. Discounts are sometimes available if you’re able to pay the whole annual premium upfront, and if you agree to pay an excess fee on any claims.
Many policies also include a no-claims bonus, which rewards you for staying in good health. This feature should not dissuade you from getting suspected problems checked out, so avoid policies that threaten to remove a bonus merely for visiting your doctor.
Employer-provided health insurance
Many employers provide PMI as a free ‘perk’. You still need to pay tax on the value of this benefit, but for basic rate taxpayers this means that they only pay 20% of the actual cost. Employer PMI schemes are often more generous than individual schemes - for example, they may offer cover for pre-existing conditions. When you retire, or switch employer, you may be faced with buying PMI independently. The choices for self-insurers are quite complex - determined by the level of cover you need and the amount you can afford to pay. Most insurers allow you to switch to a personal policy without losing cover for pre-existing conditions that arose while employed. This is known as a continuation of insurance.
With private health insurance you can get the best medical care. If you get ill you don’t have to wait for treatment and because you can choose the cover you want, you’re able to create a plan to suit you.
Please see the links below for articles on the nhs.
www.bbc.co.uk/news/health-28688311
www.heraldscotland.com/news/health/patients-spend-seven-hours-on-trolleys-in-ae.25161527
rt.com/uk/183128-suicide-nhs-wards-crisis/
blogs.spectator.co.uk/mary-wakefield/2014/08/revealed-why-paramedics-are-fleeing-the-nhs/
