Does Health Insurance Work

The NHS provides excellent free healthcare services for most UK residents. However, many still take out private medical insurance, which covers the costs of being treated by private healthcare providers. Because of the high cost of private health centres, private health insurance is an excellent way to spread expenses and avoid breaking the bank.

How does private medical insurance work in the UK? This guide has got you covered!

What is Private Health Insurance

Private health insurance, also called private medical insurance, is a contract between an individual and a private health insurance company that mandates the insurance company to pay some or all of the person's private medical bills as long as they pay their premium.

You can secure your private health insurance through an employer or directly from a medical insurance company like https://premierpmi.co.uk/health-insurance/

How Does a Private Medical Insurance Work in the UK

You might be wondering how to use private medical insurance in the UK. It's straightforward!

If you need treatment for a new health issue, your private insurance can cover the cost of getting private healthcare. It works the same way as other insurance policies.

When you register, you'll be required to pay a premium, which can be monthly, quarterly, or annually, depending on your insurance company's policies; if you need medical treatment, you claim your insurance.

However, each time you claim, you'll be required to pay a small excess while your insurer settles a significant part of your medical bill.

What Does Private Medical Insurance Cover in the UK?

Like all insurance, what your private health insurance covers depends on the insurance policy you buy and who you buy it from. Private medical insurance in the UK typically covers acute conditions (health issues that appear suddenly and last for a short time), not chronic conditions (like hypertension or diabetes that stay for longer times or even a lifetime).

There's variation in terms of coverage from one medical insurance company to another, but generally, most plans cover hospital, medical, and preventive care expenses such as:

• Expenses related to hospital admissions, surgeries, tests, and treatment received in the clinic.

• Consultations, doctor visitation, preventative care, and outpatient treatment bills.

• Expenses for mental health treatments such as therapies and counselling.

• Partial or complete payment for drug prescriptions.

• Costs of visiting specialists such as cardiologists, ophthalmologists, or dermatologists.

However, private healthcare insurance usually won't cover private treatments for:

• pre-existing health conditions

• pregnancy and childbirth cost

• organ transplants

• elective treatments such as plastic or cosmetic surgeries for beautification

• treatments due to lifestyle factors such as drug/alcohol rehabilitation

• injuries sustained in dangerous sports or during wars

• emergency treatment as these are covered mainly by NHS

• chronic conditions such as HIV/AIDS, epilepsy, diabetes, etc.

How Much Does a Private Health Insurance Cost?

The average cost of private health insurance in the UK is around £1500 annually. This is about £125 monthly, though it can be less than this or higher. The amount you pay depends on factors such as your insurance company and state of health. Some insurers offer cheaper plans for individuals less likely to fall ill and need a claim for treatment.

Some factors that affect the cost of private health insurance include:

• Who’s covered: Different plans cover individuals, couples, or families. Depending on each person's circumstances, it may be cheaper to go for individual policies or one single policy for the whole family.

• Age group: Older people are more likely to claim their premium, so the older you are, the more expensive your policy.

• Past medical history: Though private medical insurance doesn't cover pre-existing conditions, they still consider it because, in most cases, having one health condition increases your risk of having another. Thus, pre-existing conditions can make your premiums more costly.

• Family history: If you have a family history of certain health conditions, you’re at risk of that condition, too; this can make health insurance more expensive.

• Lifestyle factors: In some cases, lifestyle factors like drinking, smoking, or weight can affect what you pay for health insurance.

• Your location: It seems hard to believe, but where you live can influence how much you pay for private health insurance. Some parts of the country have been linked to increased risk of certain diseases or having a high price tag for private healthcare.

How Can I Reduce the Cost of Private Medical Insurance?

Some tips can help you bring down the cost of private medical insurance; they include:

• Adding a waiting period: This means you can be treated for 6 weeks with the NHS, then after that, if you don't get well, you'll claim your insurance and go private

• Choose a higher excess: Agreeing to pay a higher excess can significantly bring down the cost of your premium. However, this can make your policy unsuitable for your needs.

• A no-claim discount: If you haven't claimed your premium for a certain time, you may get a no-claim discount

• Choosing the right insurer: The best way to reduce your costs is to register with an insurance company that offers competitive policies that won't have you breaking the bank, like the Premium PMI.

In conclusion, private medical insurance in the UK offers a valuable option for individuals seeking to manage the high costs of private healthcare. Understanding how these policies work, what they cover and how much they cost can help you make the right decisions. Choosing the right insurer and employing strategies to lower premiums allows you to enjoy comprehensive private healthcare coverage without breaking your budget.