The Pros and Cons of Private Medical Insurance in the UK

Posted on Oct 29, 2010 by Sergio Ulloa (G+)

The Pros and Cons of Private Medical Insurance in the UK A recent report has indicated that the majority of the UK citizens do not consider Private Medical Insurance (PMI) as a high priority concern, mainly because they have access to the country's free National Health Service (NHS). This free service covers any standard treatment as well as for any other serious or continuous medical conditions. Let us review below the positive and negative points of Private Medical Insurance in the UK. Pros of Private Medical Insurance (PMI)

• Shorter queuing time: In general, there are more medical facilities available under Private Medical Insurance, as such it has much shorter waiting times than on NHS. In addition, the population in the UK is growing larger and people are living longer due to better nutrients from food and advanced medical breakthroughs. This is putting additional demands on the NHS in terms of both time and costs. Dealing with such an increase is a growing burden for the NHS, making efficient services harder to come by.
• Peace of Mind: Private Medical Insurance gives you a peace of mind. In the event that you have doubts on the NHS GP's advice, you can always seek a second opinion on your medical condition. Private insurance plans allow for greater flexibility for the types of coverage that are best suited to you particular needs.
• Better Choice: PMI offers you the option to visit the doctor and treatment centre of your choice. Depending on your policy, you may have the option to stay in a private room without the inconvenience and discomfort of being in a mixed-gender ward. Moreover, there are unrestricted visiting hours for persons visiting private room patients.
• Continuity of care: It is likely that throughout the length of your treatment, the same consultant will be handling your medical case, allowing for a greater continuity and consistency in service. This gives you more time with a consultant who understands the very specifics of needs. Depending on your insurance plan, you may also have free access to counseling services.
• Dedicated claims team: Your insurer may have a claims team that specialises in dealing with any claims issues that may arise during the policy period.

Cons of Private Medical Insurance (PMI)

• Not all medical conditions are covered: It very much depends on your policy coverage and your previous health conditions. Most basic inpatient only plans, for example, will not offer coverage for GP services, specialist visits, medications or any regular health checkups. Similarly, if you suffer from a chronic health condition or a long-term terminal illness, then usually, PMI will not cover these conditions. If you have a pre-existing condition or suffered a serious accident or illness over the past five years, it is likely that the insurer will refuse coverage for this. This however will subject to each pre-existing condition and will vary from insurer to insurer.
• What you pay is what you get: The insurance premium is proportional to the amount of coverage you require, hence the more cover you want, the higher your premium will be.
• Difficulty in knowing which PMI policy suits you best: There are many companies available to offer Private Medical Insurance in the market, and sometimes it is hard to have the knowledge to decide which PMI policy best meets your requirements. It is therefore worth talking to an independent insurance advisor, who can help you to highlight the differences between the policies and provide their expertise to explain the terms benefits that each company offers. Individual insurance companies can only discuss their own policies but they cannot give you advice on how it compares with others.

National Health Service (NHS) is only available to UK residents living in the UK. If you are a UK citizen residing overseas to another country, such as Shanghai or Dubai, then NHS will no longer be available to you as a treatment option. Should you require insurance coverage in a foreign locality you can purchase medical insurance overseas. There are two options that one as an expat can purchase abroad, namely an international insurance plan or a local insurance plan. Most expats would prefer to select an international health insurance plan to a local plan, for a number of reasons outlined below:

1. With a health insurance plan purchased locally, these will only provide coverage in that specific country. An international plan on the other hand works differently than this. In the unfortunate event, that one has an accident or becomes critically ill in a place where medical facilities are of a lower standard to those in their home country, the plan will provide the option to go home or to another country where the quality of the medical facilities is of a higher standard for medical treatment. This emergency evacuation can be an important point for expats to consider as it gives them the peace of mind that they deserve in foreign places.
2. A local plan will only give you protection in the country where you purchase your plan, whereas an international medical plan will provide you coverage globally. Should you decide to relocate to another country, with an international plan in place, you do not have to worry about setting it up again, as it will follow you wherever you travel. However, with a local plan, you are required to cancel the existing plan and take out a new plan in the country you are moving to. A foreseeable problem with local plans is that waiting periods usually apply to a new policy and some conditions maybe considered by the insurer as pre-existing and maybe excluded in the new policy.
3. With an international medical plan, expats have the option to select the doctor and hospital of their choice to carry out the treatment. Normally, international plans offer a larger local network of hospitals to their clients when compared to the local plan, allowing the expats a wider selection.
4. One of the major differences between International medical plans and local plans is that normally with an international plan, the policy is guaranteed to be renewable for life, while local plans will usually put an age limit on renewal of policies. In most cases if the client is over the age of 65, a local policy will not allow for renewal.
5. In general, International medical policies have far less exclusions than local policies. An international policy also has a higher level of annual limit cover, typically over US$ 1 million.
6. With an international policy, the renewal premiums are typically community rated, i.e. based on global policyholders, not based on general health or how many times an individual had gone to the hospital in previous years. Local plan renewal premiums on the other hand are determined by the claims of previous years, i.e. if the claims of previous years are high, the renewal premium will increase accordingly.
7. Most expats prefer international medical plans to local plans because they offer more benefits and flexibility, giving them the peace of mind that they are looking for.
8. On the surface, the local plans might seem like the cheaper option, given that they normally have a lower premium. In the end, however, taking into account the "Exclusions" in the policies, they may prove to be more expensive and insufficient to the level of coverage you required.

New medical breakthroughs including new technology and drugs, diagnostic methods and procedures are improving the chances of getting a cure for illnesses. Medical advances however come with increasing medical costs. Whether you are a UK resident entitled to NHS, or an expatriate residing in another country, Private Medical Insurance (PMI) is an important investment for you to make. It always helps individuals to bypass long waiting lists in the public health sector and receive prompt medical assistance, giving you a peace of mind in getting the treatment that you deserve and without having to worry about the ever-increasing medical costs.