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Finance By Ann Haldon<br />
Is It Worthwhile Taking Out Private<br />
Health Insurance?<br />
Private health insurance generally<br />
covers the cost of private<br />
consultations, treatments,<br />
and immediate aftercare as an<br />
inpatient. Some policies also<br />
pay for outpatient care, such as<br />
physiotherapy.<br />
Employers sometimes offer this<br />
type of insurance as a benefit<br />
to their employees, but if you’re<br />
thinking of taking out your own<br />
policy, how do you know if it’s<br />
going to be worthwhile?<br />
Before we look at the benefits and<br />
potential drawbacks of private<br />
medical insurance, here’s a little<br />
more detail on the cover that<br />
could be included.<br />
WHAT MIGHT A HEALTH<br />
INSURANCE POLICY COVER?<br />
The benefits provided by private<br />
health insurance vary according<br />
to the monthly premiums, with<br />
comprehensive policies offering<br />
the greatest level of cover. Here’s<br />
a general outline of the main<br />
benefits:<br />
• Private consultations<br />
• Anaesthesia<br />
• Inpatient stays for investigative<br />
tests, surgery, or immediate<br />
post-treatment care<br />
• Treatments and procedures as a<br />
day patient<br />
• Outpatient treatments and<br />
aftercare - physiotherapy or<br />
hydrotherapy, for example<br />
Some health insurance providers<br />
also offer cover for alternative<br />
therapies such as acupuncture,<br />
homeopathy and herbal medicine,<br />
and dental or eye care.<br />
WHAT ISN’T COVERED?<br />
Although specialist insurers do<br />
exist, a basic health insurance<br />
policy doesn’t generally cover:<br />
• Pre-existing conditions (usually<br />
in the last five years) or chronic<br />
illnesses<br />
• Pregnancy and childbirth<br />
• Cosmetic surgery<br />
• Fertility treatment<br />
• Emergency treatment<br />
HOW DOES PRIVATE HEALTH<br />
INSURANCE WORK?<br />
Private medical insurance is<br />
designed to work alongside<br />
NHS services, so your GP would<br />
need to refer you for a private<br />
consultation. Policies are renewed<br />
annually, with monetary excesses<br />
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applying in the same way as with<br />
other forms of insurance.<br />
The insurer sets a limit on the<br />
amount of cover available to you<br />
annually. They define the benefits,<br />
plus any exclusions that apply - a<br />
pre-existing illness, for example<br />
- in the policy document. You pay<br />
a monthly premium, usually by<br />
direct debit, and are able to take<br />
advantage of cover during the<br />
policy year, up to the set limits.<br />
WHY MIGHT YOU DECIDE TO<br />
TAKE OUT PRIVATE HEALTH<br />
INSURANCE?<br />
• You need fast access to a<br />
consultation, investigative<br />
procedure, or treatment<br />
• Treatment isn’t available on the<br />
NHS<br />
• You’re employed, but don’t<br />
receive private health insurance<br />
as a benefit<br />
• You’d like to see a particular<br />
consultant, or require a<br />
specialist referral<br />
• You want the comfort of staying<br />
in a private room<br />
• You don’t want to wait for<br />
physiotherapy after surgery<br />
WHAT ARE THE POTENTIAL<br />
DRAWBACKS OF PRIVATE<br />
MEDICAL INSURANCE?<br />
• Policies are costly, with<br />
premiums increasing every year<br />
• Some health conditions<br />
are excluded, so a private<br />
healthcare policy may not cover<br />
all your medical needs<br />
• You have to pay an excess each<br />
year<br />
• You may have ethical concerns<br />
about private health care<br />
• The insurer sets limits on the<br />
amount of cover available<br />
for each condition, each type<br />
of treatment, and an overall<br />
amount in the policy year
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