is your body fully covered? - As medical insurance costs rise, we show how you can reduce the bill - With reports this weekend that the NHS will face a funding gap of around £6 billion a year by 2015, many may be worried that this could lead to longer waiting lists. However, the luxury of private medical insurance is beyond the pockets of many people; and with companies keeping a tight grip on their purse strings, such employee benefits are harder to come by.
One cheaper alternative is a cash plan. Although we have a free NHS, many of us find ourselves paying for medical treatment, be it regular trips to the dentists, optician, prescription charges or treatment by an osteopath. Merely going into hospital can be expensive when you take into account the parking fees, telephone charges – even the need to buy a card to work the television.
Most health care cash plans do not require a medical Photo: Clara Molden
This is where the cash plan comes in. For a modest monthly fee, these will pay a limited contribution towards such charges. WPA has this week relaunched which it now calls an "NHS top-up plan". For £21 a month subscribers can claim up to £150 in dental and optical costs a year, or £300 towards "complementary therapies".
For the first time, those staying in hospital can claim towards visitor car-parking costs, too; though there is no cover for prescription charges. The company also offers a lower level cover, which costs £7.76 a month, although the amount you can claim towards each benefit is reduced.
With a cash plan you arrange the treatment, pay for it in full, then send off the receipt to reclaim any payment due. But watch out for time limits on claims and exclusions. Most plans will insist you need a GP referral to validate claims, and some will stipulate you inform the cash plan provider before having treatment.
There is usually a qualifying period of between one and six months before you are eligible to claim. This is to prevent people taking out a policy to cover an existing illness, claiming the cash, then cancelling the policy.
Most health care cash plans do not require a medical. However, any existing health problems are unlikely to be covered.
For those looking for an alternative to the NHS, comprehensive medical insurance should pay for private consultations, diagnostic tests, treatment and surgery in a private hospital, should it be required. Not only can this reduce the time it takes to get treatment, it can also give patients more choice as to when and where that treatment is given.
Medical insurance offers additional "home comforts'' to hospital stays: for example staying in a private en suite room, rather than on a larger, and sometimes mixed, NHS ward.
But this cover does not come cheaply. Advances in medicine have pushed health care costs up at a faster rate than inflation, and these rising costs have meant steep premium increases in recent years.
Most insurers will also raise the cost of cover as policyholders age, to reflect the increased chances of them making a claim: someone aged 70 is likely to pay about three times as much for cover as someone aged 35. Meanwhile, a standard policy from BUPA for a healthy 45-year-old costs £55 a month.
Remember that even the most comprehensive medical policy will leave you relying on NHS care in many circumstances. Most policies do not cover emergency treatment. Likewise, having a private policy does not allow you to bypass your GP. It is only if your doctor refers you for more tests or to see a specialist that your insurance will kick in.
Private policies also do not cover the treatment of "chronic'' ongoing conditions, such as asthma or multiple sclerosis, nor do they cover routine medical care needed during pregnancy or childbirth, or infertility treatment.
In addition, any medical conditions you have at the time of taking out the policy (or have previously had treatment for) won't be covered.
But there are ways of reducing the cost of this insurance. To keep premiums low, most insurers have designed "budget'' policies, to appeal to consumers who want the benefits of private cover without paying the full price. Many of these are designed to work in parallel with the NHS.
BUPA offers a policy that covers just heart and cancer conditions; other policies cover routine hip replacements, varicose veins treatments and so on, but do not provide cover for cancer. WPA insurance offers a "shared responsibility plan", where policyholders pay a fixed proportion (25 per cent) of any claim; it also offers one policy which has an excess of £1,000 – again, significantly bringing down the cost.
Axa PPP offers a plan where you can only claim on the insurance policy if NHS treatment is not available within six weeks; this is aimed at those whose primary concern is not having to wait for treatment.
Most insurers also offer budget plans that restrict hospital choice, or restrict cover, so some outpatient treatments (such as physiotherapy) may not be covered. There are also policies that pay for diagnostic tests, but not certain operations; and others that pay for the operations but not the tests.
Those keen to cut the cost of cover should check if their employer offers medical insurance, as this can work out cheaper. Many are non-contributory (your employer pays the premiums), although you will be taxed on this benefit. Some will offer the opportunity to cover a spouse, or children, at a reduced cost.
Even if your employer asks you to contribute to the cost, this is likely to be less than the price you would pay if you bought a comparable policy on the open market.
Given the plethora of choice in the medical insurance market, anyone considering cover should read the terms and conditions carefully, particularly if they are opting for a lower-cost plan. Make sure you fully understand why the policy is cheaper, and ensure it still meets your needs. ( telegraph.co.uk )
One cheaper alternative is a cash plan. Although we have a free NHS, many of us find ourselves paying for medical treatment, be it regular trips to the dentists, optician, prescription charges or treatment by an osteopath. Merely going into hospital can be expensive when you take into account the parking fees, telephone charges – even the need to buy a card to work the television.
Most health care cash plans do not require a medical Photo: Clara Molden
This is where the cash plan comes in. For a modest monthly fee, these will pay a limited contribution towards such charges. WPA has this week relaunched which it now calls an "NHS top-up plan". For £21 a month subscribers can claim up to £150 in dental and optical costs a year, or £300 towards "complementary therapies".
For the first time, those staying in hospital can claim towards visitor car-parking costs, too; though there is no cover for prescription charges. The company also offers a lower level cover, which costs £7.76 a month, although the amount you can claim towards each benefit is reduced.
With a cash plan you arrange the treatment, pay for it in full, then send off the receipt to reclaim any payment due. But watch out for time limits on claims and exclusions. Most plans will insist you need a GP referral to validate claims, and some will stipulate you inform the cash plan provider before having treatment.
There is usually a qualifying period of between one and six months before you are eligible to claim. This is to prevent people taking out a policy to cover an existing illness, claiming the cash, then cancelling the policy.
Most health care cash plans do not require a medical. However, any existing health problems are unlikely to be covered.
For those looking for an alternative to the NHS, comprehensive medical insurance should pay for private consultations, diagnostic tests, treatment and surgery in a private hospital, should it be required. Not only can this reduce the time it takes to get treatment, it can also give patients more choice as to when and where that treatment is given.
Medical insurance offers additional "home comforts'' to hospital stays: for example staying in a private en suite room, rather than on a larger, and sometimes mixed, NHS ward.
But this cover does not come cheaply. Advances in medicine have pushed health care costs up at a faster rate than inflation, and these rising costs have meant steep premium increases in recent years.
Most insurers will also raise the cost of cover as policyholders age, to reflect the increased chances of them making a claim: someone aged 70 is likely to pay about three times as much for cover as someone aged 35. Meanwhile, a standard policy from BUPA for a healthy 45-year-old costs £55 a month.
Remember that even the most comprehensive medical policy will leave you relying on NHS care in many circumstances. Most policies do not cover emergency treatment. Likewise, having a private policy does not allow you to bypass your GP. It is only if your doctor refers you for more tests or to see a specialist that your insurance will kick in.
Private policies also do not cover the treatment of "chronic'' ongoing conditions, such as asthma or multiple sclerosis, nor do they cover routine medical care needed during pregnancy or childbirth, or infertility treatment.
In addition, any medical conditions you have at the time of taking out the policy (or have previously had treatment for) won't be covered.
But there are ways of reducing the cost of this insurance. To keep premiums low, most insurers have designed "budget'' policies, to appeal to consumers who want the benefits of private cover without paying the full price. Many of these are designed to work in parallel with the NHS.
BUPA offers a policy that covers just heart and cancer conditions; other policies cover routine hip replacements, varicose veins treatments and so on, but do not provide cover for cancer. WPA insurance offers a "shared responsibility plan", where policyholders pay a fixed proportion (25 per cent) of any claim; it also offers one policy which has an excess of £1,000 – again, significantly bringing down the cost.
Axa PPP offers a plan where you can only claim on the insurance policy if NHS treatment is not available within six weeks; this is aimed at those whose primary concern is not having to wait for treatment.
Most insurers also offer budget plans that restrict hospital choice, or restrict cover, so some outpatient treatments (such as physiotherapy) may not be covered. There are also policies that pay for diagnostic tests, but not certain operations; and others that pay for the operations but not the tests.
Those keen to cut the cost of cover should check if their employer offers medical insurance, as this can work out cheaper. Many are non-contributory (your employer pays the premiums), although you will be taxed on this benefit. Some will offer the opportunity to cover a spouse, or children, at a reduced cost.
Even if your employer asks you to contribute to the cost, this is likely to be less than the price you would pay if you bought a comparable policy on the open market.
Given the plethora of choice in the medical insurance market, anyone considering cover should read the terms and conditions carefully, particularly if they are opting for a lower-cost plan. Make sure you fully understand why the policy is cheaper, and ensure it still meets your needs. ( telegraph.co.uk )
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