Private Medical Insurance in the United Kingdom

Posted by datahealthconsultancy on March 9th, 2016

The government in the UK provides all residents free public healthcare via the National Health Service (NHS). The NHS runs on limited funds and is primarily funded by taxation. The great demand for its services often demonstrates the limits of a public healthcare system in terms of range and cost of treatment. Wait times for some treatments are very long. Depending on the region one lives in, availability of specialists accepting NHS patients may also be limited. 

Alternatives like Private Medical Insurance (PMI) are available to counter the problem. However, estimates suggest that only 6.3% of the population, i.e. approximately 4 million people have opted for PMI. The main benefit of resorting to the private health sector in the UK is not necessarily the quality of treatment, but shorter waiting periods and easy availability of specialist consultants. 

Private medical insurance is often called ‘health insurance’. It should not be confused with other types of insurance such as health cash plans, income protection and critical illness. Private medical insurance does not have to be expensive. There are plenty of cheap plans available which offer peace of mind in the eventuality of the insurance holder or their family falling ill. 

Private health insurance offers three key advantages:

• Shorter waiting times
• Quicker diagnosis
• Better facilities (such as private rooms) 

Health insurance also provides access to specialist drugs and treatments that may not be available under the NHS. These may be expensive, and difficult to afford without insurance. The aim of private medical insurance is to provide policyholders comfort and reassurance from the time of initial consultation right through aftercare. A patient or their family do not have to bear the additional anxiety over costs when they need medical care. A person’s well-being is the most valuable element of their lives, and the means to preserve it is of vital importance. 

Private medical insurance is designed to cover the cost of private medical treatment for ‘acute conditions’ once the policy comes into effect. However, most insurers do not provide cover for longer-term conditions, which are referred to as chronic conditions. 

Private insurance does not cut off access to government healthcare schemes. PMI is designed to work alongside the NHS. The objective is not to replace the services offered by NHS. In any case, customers retain the right to use the NHS even after purchasing health insurance. 

About the Author: 

Dean Ghavami is the Director of DataHealth Consultancy Ltd which was founded back in 2000 and he has over 15 years of experience in the health insurance industry.