Although the NHS provides free, quality healthcare to all UK citizens, many people prefer private healthcare. Less waiting, comfort and personalization are the main advantages.
The cost of private health insurance is determined by your age, where you live and your lifestyle. Like most insurance, health insurance is not the same for everyone. However, you can make it more accessible by making smart choices.
Here is an example to give you an idea:
- If you are under 65, the annual cost of insurance is around £1,200, paid in 12 monthly instalments.
- If you are over 65 your annual healthcare costs can be £2,000 or more.
What factors contribute to the high cost of private health care?
The cost of health care is quite high, which can lead us to wonder whether private health insurance is worth it or not. Even simple basic treatments can be surprisingly expensive in some cases, eg. B. Direct NHS billing or private healthcare. For example, someone wanting a knee replacement would have to pay an average of £11,814. As this is an average value, prices may be higher or lower than the indicated value. Insurers take hospital costs into account when calculating rates and other factors. The above scenario explains why the costs of private health insurance are so high.
Purchasing private health insurance in the UK is a personal choice. If possible, make sure the monthly premium matches your financial means. However, keep in mind that you may need to narrow your options to get flexible coverage.
What factors affect the cost of private health insurance in the UK?
The cost of private health insurance is influenced by several factors, the most important of which are hospitalization costs, your living conditions and the amounts covered. The top ten cost drivers are listed below:
• Your age: Your age is one of the main factors affecting the cost of private health insurance. Since you are more likely to use medical services as you get older, your rates will be higher than when you were younger.
- • Your postal code: Insurers take into account the location of a hospital and the average cost of care in the area.
- Your general health: this includes lifestyle factors such as smoking habits.
- Levels and limits of cover: refers to the different levels and limits of the treatment you have chosen. They may also contain items that are not covered by the standard policy.
- Maintenance of hospital facilities and grounds – This includes things like the hospital building, housing, other architectural elements, and the safety of medical staff, patients, volunteers, and visitors. The driveway, parking lots, arrival area and signage are maintained as part of property maintenance.
- Provide effective drugs such as personalized drugs and specialty drugs used in private hospital care.
- Hospital staff: Includes the recruitment of highly qualified health professionals.
- Medical equipment for diagnosis and treatment: As technology advances, hospitals need to keep their medical equipment up to date.
- Software for encryption, security, system access control, authentication and identification of medical data: this includes electronic health records (EHR) and data encryption, security, control of system access, authentication and identification software.
- For-profit status: Sometimes insurers are for-profit corporations. To operate, they charged extra for their services.
How does your medical history affect your private health insurance options?
As with other insurance products, your premium may be affected by the type of subscription available. When you apply for health insurance, insurers use this process to determine if they will provide coverage, at what price, and with what exclusions or limitations, if any, based on your medical condition. The four basic types are:
A two-year moratorium was imposed.
You are not insured for illnesses you have had in the last five years until:
- You have been a member for two consecutive years.
- You have had no symptoms related to this condition in the past two years.
If you don’t want to reveal all of your medical history, this is the option for you. When you make a claim, you will be informed if you are covered. This is because insurers do not take your medical history into account. It also means it’s quick and easy to use, and you’ll be covered faster than other types of moratorium subscriptions.
Complete Medical Subscription (FMU)
FMU is the most comprehensive subscription type available. Insurers want to know your medical history, including pre-existing conditions. They calculate your coverage based on these details.
This means you can get insurance for a pre-existing condition that you would otherwise be denied. Even if your current illness is not insured, you will know immediately what you can or cannot claim.
Unchanged medical exclusions (CME)
When you join a “CME” base, the insurers will continue to follow the medical exclusions set by your previous mutual.
Medical records are ignored (MHD)
If you enroll on an “MHD” basis, insurers will accept any pre-existing conditions you have at the time of your application.
How do different hospitals affect the cost of private health care?
Treatment costs vary between private hospitals in the UK. The cost would be determined by the equipment used, the facilities available and the accommodation provided. Hospitals in major cities in the UK, like many other services, tend to be more expensive than hospitals in rural areas. Insurers strive to maintain the level of play for all parties involved.
First, they work with hospitals to make sure prices don’t get out of control and negotiate preferential rates with hospitals, resulting in lower premiums.
Hospitals are then divided into categories. For example, there are hospitals that are the cheapest, the most expensive, and a middle group. You then choose which of the three hospitals you want to go to and pay more if you want to go to the more expensive ones. This ensures that those who live near cheap hospitals pay less for health insurance.
However, if you live in a big city, your local hospital may be in your insurer’s most expensive group. This would affect the amount you pay.
Choosing which hospital to purchase coverage for is a personal decision. The location of the nearest insured hospital, the premium associated with the cover and the facilities of that hospital for specific medical conditions you may have are key criteria considered in this selection.
Vital health insurance, for example, has three hospital levels:
- Lowest Category: Local – This category includes BMI Healthcare, Spire Healthcare, Aspen, Nuffield Health, Ramsay Health Care and New Victoria Hospital as well as all hospitals from the largest hospital groups in the UK. It does not cover a central London hospital.
- Medium-high category: “Nationwide”: This category includes most other private hospitals outside of London, as well as some private NHS inpatient units in London.
- “London Care” is the highest category: this level includes the following:
BMI Healthcare, Nuffield Health, Spire Healthcare and Ramsay Health Care are examples of major UK hospital groups.
2. Several local providers are available including Aspen Healthcare and New Victoria Hospital.
3. The Royal Marsden Hospital, London Clinic, St John and St Elizabeth’s Hospital, King Edward VII’s Sister Agnes Hospital and London Clinic in central London.
4. There are several private hospitals outside of London.
5. Outside London, all private NHS patient units.
6. There are several private units for NHS patients in central London.
Other insurance companies provide lists of comparable hospitals, although specific alternatives may vary. For example, BUPA health insurance has three tiers, Aviva health insurance has three tiers, and AXA has two tiers.