Jane Dotson
Private medical insurance is an increasingly popular option in the UK, with around 8 million people paying for it. It's a way to spread the cost of private healthcare, which can run into thousands of pounds. The NHS provides free healthcare to most UK residents, so the question is: is it worth paying for private medical insurance? The answer depends on your individual needs and circumstances. Private health insurance can get you seen quicker and provides more choice when it comes to consultations, scans, and treatments. However, it doesn't cover all medical needs and won't replace the NHS for urgent care. It's also important to consider the costs, as premiums can be expensive, and there may be limits and restrictions on what you can claim.
Is company private medical insurance worth it?
| Characteristics | Values |
|---|---|
| Cost | The average yearly premium is around £1,020, but many people pay much less. The amount you pay depends on your insurer, what's covered in your policy, and your circumstances and current state of health. It may also be more expensive the older you are. |
| Coverage | Private health insurance covers medical treatment for acute conditions, but not chronic ones. It also doesn't usually cover pre-existing conditions, although you could opt to include these as an add-on. Basic insurance covers inpatient treatment, mid-range covers inpatient and outpatient treatment, and comprehensive covers everything with no limits on outpatient care. |
| Benefits | Private health insurance can provide peace of mind, faster access to medical care, and more choice when it comes to consultations, scans, and treatment. It can also provide support for mental health and cover for critical illnesses. |
| Drawbacks | Private health insurance doesn't cover all medical needs and won't replace the NHS for urgent care. It may have limits, restrictions, and exclusions, and it can be costly. |
| Alternatives | You could use your savings to pay for private care, or consider self-insuring by putting money into a dedicated savings account each month. You could also look into healthcare cash plans (HCPs) or critical illness insurance. |
| Company-provided insurance | Some companies offer private health insurance as an employee benefit, which can be a cheaper option than individual contracts. |
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What You'll Learn
Cost of private medical insurance
Private medical insurance is a policy that covers the cost of private medical care should you become unwell. It works alongside the NHS, often giving you access to shorter wait times, a choice of location, and treatments only offered privately.
The cost of private medical insurance varies depending on several factors. The average yearly premium on private health insurance is around £1,020, which works out at about £85 per month. However, many people pay much less or more, depending on various factors. The older you are, the more expensive it is likely to be, as you are more likely to suffer health problems.
The level of cover you choose will also affect the cost. Insurers often offer tiers of cover, from basic to more comprehensive. Basic cover includes any inpatient treatment, meaning anything that entails a hospital bed or an overnight stay. Mid-range cover provides both inpatient and outpatient care, but with limited outpatient cover. Comprehensive cover includes everything basic and mid-range cover has, without limiting outpatient care.
The amount of excess you choose will also impact the cost of your insurance. Adding a higher excess will lower the cost of the policy, but you will need to pay the excess if you claim.
The number of people included in the policy will also affect the price. The average monthly cost of private health insurance in the UK is £79.62 for individuals, £146.86 for couples, and £165.67 for a family of four.
The cost of private medical insurance also depends on your insurer and policy, where you live, your lifestyle, and your claims history. It is important to note that private medical insurance does not cover all medical needs. For example, it typically does not cover chronic conditions or pre-existing conditions.
Before purchasing private medical insurance, it is essential to consider your individual needs and circumstances. It may be worth checking if your employer offers private medical insurance as part of your employee benefits package, as this can be a more cost-effective way of obtaining cover.
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$27.21 $41.95
Cost of private medical treatment
Private medical treatment costs in the UK vary depending on several factors, including the type of surgery, its complexity, the location of the treatment centre, and the surgeon's rates.
Private hospital treatments can range from under £1,000 for simple operations like mole removal to over £15,000 for a full hip or knee replacement. For example, knee surgery can cost between £5,000 and £15,000, while hip surgery typically ranges from £11,000 to £15,000. Cataract surgery usually costs between £3,000 and £4,000 per eye.
The cost of private consultations without health insurance in the UK is between £200 and £300, with higher rates for consultants with more experience or qualifications. Private hospitals in city centres, such as London, can charge up to 20% more than those in other parts of the country due to higher operating costs.
Private health insurance is a way to spread the cost of private medical treatment over time. The average yearly premium is around £1,000 to £1,500, depending on the source. However, the amount you pay depends on the insurer, the policy, your circumstances, and your health. It may be more expensive as you age, as health problems become more likely.
Some employers offer private health insurance as a benefit, which is typically the cheapest way to obtain coverage. Healthcare cash plans (HCPs) are another option, allowing employees to recoup expenses for common services like dental and optical care.
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What private medical insurance covers
Private medical insurance covers the cost of treatment by private healthcare providers. It can provide fast access to medical care and more choice when it comes to medical consultations, scans and treatment. The level of cover you acquire depends on the specific private health insurance you pick. Basic cover includes inpatient treatment, which is any medical care requiring a hospital bed or an overnight stay. Mid-range cover includes both inpatient and outpatient treatment, but with limited outpatient cover. Comprehensive cover includes everything basic and mid-range cover has, without limits on outpatient care. Many providers will also let you include additional health insurance cover options, such as mental health, cancer, and private GP cover, if these aren’t already included in your policy.
Private health insurance typically covers a range of acute conditions but not chronic ones. Acute conditions occur quickly and suddenly, with resolvable symptoms. Examples include broken bones, burns, flu, heart attacks and pneumonia. Chronic conditions, on the other hand, are long-term illnesses that are sometimes incurable, such as diabetes, epilepsy and heart disease. Private health insurance also doesn’t usually cover pre-existing conditions, although you could opt to include these as an ‘add-on’. Other exclusions from coverage include elective and cosmetic procedures, routine pregnancy and childbirth, emergency treatment, injuries from dangerous activities, and rehabilitation for substance abuse.
The average yearly premium on private health insurance is around £1,020, although some sources state it is around £1,500. You can get private health insurance to cover just you or other members of your family. The amount you pay depends on your insurer, what’s covered in your policy and your circumstances and current state of health. It may also be more expensive the older you are, as you are more likely to suffer health problems.
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Private vs NHS treatment
Cost: Private medical insurance is not cheap, with average yearly premiums around £1,020-£1,500, and the cost can be higher for older people. However, it can be cheaper to access private insurance through an employer's group scheme, and some people choose to self-insure by putting money into savings to cover potential medical costs. The NHS, by contrast, is free at the point of use for UK residents, providing comprehensive treatment for all, regardless of ability to pay.
Waiting times: One of the main advantages of private insurance is faster access to treatment. The NHS is often very good at dealing with serious illnesses and offers priority treatment for cancers, strokes and heart disease, but waiting times for consultations and treatment can be long and fluctuate. Private insurance can provide quicker access to consultations, scans and treatment, which may be a priority for some.
Choice and convenience: Private insurance offers more choice and convenience, with faster appointments and a wider range of options for treatments and consultations. This can include access to specialist doctors and more modern facilities. NHS treatment, by comparison, may be more limited in terms of choice and location.
Chronic conditions: Private insurance typically covers acute conditions, which are quick-onset and often short-term, but may not cover chronic, long-term illnesses. The NHS, however, provides comprehensive treatment for all, including diabetes, epilepsy and heart disease.
Pre-existing conditions: Private insurance may not cover pre-existing medical conditions, whereas the NHS treats all patients regardless of their medical history.
In conclusion, private medical insurance can provide faster, more personalised treatment and greater choice. However, it comes at a significant cost and may not cover all medical needs. The NHS offers comprehensive, free treatment for all, but waiting times can be longer, and the range of options may be more limited. The decision to opt for private insurance or rely on the NHS depends on individual needs, priorities, and financial circumstances.
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Employee benefits
Private medical insurance (PMI) is an essential component of a comprehensive employee benefits package. It is one of the "big four" insurance benefits that employers can provide for their employees. Group health insurance is a type of health coverage provided by employers or organisations to their employees or members. It offers medical benefits to a group of people under a single insurance policy.
Employees increasingly rank their benefits as more important than their salary, and private medical insurance has become the most important perk that employees look for in their benefits package. Research by Zest found that one-third (32%) of employees rank PMI ahead of other benefits, such as increased pension contributions (30%), high-street discounts (21%), and a company car (17%).
There are several benefits to offering private medical insurance as an employer. Firstly, it can help attract and retain the best talent, positioning your company as one that cares for its employees' holistic needs and remaining competitive within the job market. Secondly, it can improve employee wellbeing, boosting productivity. Private healthcare offers significantly reduced waiting times for consultations, tests, and treatments compared to public healthcare services, allowing employees to address health concerns promptly and reducing sickness and absence rates. Additionally, private medical insurance can provide access to a high standard of healthcare for a wide range of illnesses and conditions, including mental health and musculoskeletal issues. It also often includes 24-hour access to a GP or nurse practitioner.
However, there are also some limitations and drawbacks to consider. Private medical insurance can be costly for employers, with prices ranging from £200 to £1,500 per year per employee. These costs tend to increase over time due to medical inflation, increased demand for medical services, and advancements in medical technology. As a result, employers may face escalating premiums, straining their budgets. It is also important to note that private health insurance policies may have exclusions for pre-existing conditions, chronic illnesses, or specific medical procedures, leaving employees to rely on public healthcare services or pay out-of-pocket for certain treatments.
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Frequently asked questions
Private health insurance covers the cost of treatment by private healthcare providers. It can provide fast access to medical care and more choice when it comes to medical consultations, scans and treatments.
The level of cover you receive will depend on the insurance you choose. Basic cover includes inpatient treatment, mid-range covers both inpatient and outpatient treatment, and comprehensive covers everything basic and mid-range do, without limits on outpatient care.
Private health insurance does not usually cover pre-existing conditions, chronic illnesses, elective and cosmetic procedures, routine pregnancy and childbirth, emergency treatment, injuries from dangerous activities, or rehabilitation for substance abuse.
The average yearly premium on private health insurance is around £1,020-£1,500, although many people pay much less. The amount you pay depends on your insurer, what's covered in your policy, and your circumstances and current state of health.
This is a decision that should be made on a case-by-case basis. If you are worried about NHS waiting lists, self-employed, or want peace of mind, then private health insurance could be worth it. If you are more relaxed and have faith in the NHS, you may not consider it a worthwhile expense.
