Private Medical Insurance covers the cost of private healthcare treatment for acute health conditions. The main benefits of Health Insurance include:
People often want to find out how much UK Private Health Insurance costs however this is difficult to do given the level of cover varies so significantly from insurer to insurer and the cost is hugely dependant on the individual or family being covered.
To keep things simple the cost of Health Insurance is primarily determined by the level of inpatient and outpatient treatment that is covered.
Where most Private Health Insurance covers inpatient treatment in full it tends to be the level of outpatient cover that determines the overall cost and whether a policy is budget, mid-range or comprehensive.
The more comprehensive the policy becomes the more likely you are to claim which is reflected in the higher monthly cost of the cover.
The best UK Private Medical Insurance offers the widest cover, but this obviously comes at an elevated cost.
For cheaper Health Insurance premiums, most policies allow you to adjust cover, potentially by reducing benefits. Alternatively, you can add options to suit your needs if your budget allows.
There are a variety of factors that will impact the cost of Private Health Insurance. The biggest six are:
It’s possible to drop outpatient cover entirely from your Health Insurance and buy an inpatient-only policy.
These are at the most basic end of the UK Medical Insurance market and offer the cheapest Health Insurance cover available while still paying for procedures such as surgery.
Dropping outpatient care will significantly cut the cost of your Private Health Insurance policy, but purchasing one of these plans will mean you’ll have to use the NHS for diagnostic tests, consultations etc.
Another way to reign in the cost of PMI is to put a cap on the amount of outpatient cover the insurer will pay for. Most insurers have outpatient monetary caps ranging from £500 to £1,500 per annum.
This still gives you some outpatient cover but, because the insurer won’t be liable for the full cost in the event of a particularly expensive claim, it can help reduce your premiums.
All insurers will have a list of facilities that you’re eligible to receive treatment in as standard.
To keep costs down, many insurers offer additional ‘tiers’ of access to private facilities for you to choose from.
The top facilities in the country – usually those in Central London – are often kept separated from other private clinics and hospitals by this tier system because of the expense of treating patients there.
As these top hospitals are more expensive, the cost of Medical Insurance tends to be higher when you are covered for visits to these facilities.
Similar to a car insurance excess, whereby you agree to pay the first initial cost of repairing a damaged vehicle to keep the cost of insurance lower, Health Insurance also has an excess system.
Here, you can agree to pay an initial sum towards the cost of your treatment upfront before the Health Insurance kicks in to cover the rest.
Excesses can range from zero, meaning the insurer covers the entire cost of your treatment (making this option the most expensive) all the way up to £1,000 or more.
If affordable, you may want to look at setting a higher excess in order to keep down the monthly cost of Health Insurance premiums.
Some policies will allow you to add optional extras to your insurance coverage at a cost.
Additional cover you may be able to choose from might include:
Health Insurance costs vary so much based on your individual profile and what you need from the cover.
To work out the average cost of Health Insurance below, we’ve searched all the major players in the UK market and assumed:
With these assumptions we have calculated pricing of a Mid-Range Health Insurance policy for different age groups as well as for individuals, couples and families.
As you can see there are a huge number of variations you can apply to your policy that will affect the cost of Health Insurance. We have a team of experts with the know-how and tools to make sure you find the most suitable cover.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.
It can all end up getting a little confusing. If you would like to talk through the policy benefits and how they can impact on the cost please don’t hesitate to pop us a call on 02074425880 or email 02074425880.
Head of Employee Benefits at Drewberry
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.