As much as 16mn individuals — a 3rd of the working age inhabitants — say non-public medical insurance coverage is crucial, after NHS ready lists for routine hospital therapy in England rose for the primary time in seven months.
The variety of appointments for sufferers ready for NHS therapy in England jumped to 7.42mn in March, up from 7.4mn in February — the primary uptick in ready instances since August 2024.
Regardless of the therapy backlog rising, thousands and thousands are nonetheless holding again from shopping for non-public medical insurance coverage (PMI), designed to cowl the price of non-public medical therapy, based on new evaluation.
Solely 8 per cent of a pattern of two,000 UK customers aged between 18 and 70 had purchased a person PMI coverage previously two years, with an extra 8 per cent having secured cowl by means of their employer, based on a brand new nationally consultant survey from well being insurer The Exeter.
The evaluation comes as demand for personal healthcare is about to achieve new data in 2025, based on the most recent insurer-funded exercise knowledge from Healthcode.
“Personal medical insurance coverage is a extremely desired product. Who doesn’t need entry to immediate healthcare in a clear, calm setting?” mentioned Brian Walters, managing director at specialist adviser Regency Well being.
Advisers level to a number of causes for the obvious gulf between those that consider non-public well being cowl is crucial and the seeming hesitancy for some in buying cowl.
The perceived value of premiums is a key difficulty, say PMI specialists.
Practically three-quarters, or 74 per cent of people that took half in a latest survey by Benenden, a healthcare supplier, mentioned PMI was unaffordable.
But pricing analysis this yr by myTribe, a PMI instructional web site, discovered that many may get hold of cowl for lower than the worth of a every day espresso.
“A 30-year-old pays on common £35.51 month-to-month for entry-level cowl (therapy solely, not prognosis),” mentioned Chris Steele, founding father of the myTribe.
“Even complete insurance policies with outpatient diagnostics common simply £53.51 month-to-month for a 30-year-old, lower than many cell phone contracts.”
Age and postcode also can affect the price of well being cowl. Older individuals are extra more likely to undergo well being issues, which can be mirrored in premiums.
However postcodes also can play a giant half in a PMI quote.
For instance, a PMI coverage with an deal with of Inverness, Scotland, can be cheaper than one with a Chelsea postcode, in London. It’s because the price of therapy is often larger in larger cities.
The speed of annual coverage will increase also can current affordability challenges, particularly at renewal following a declare, the place will increase of fifty per cent are widespread.
In response to affordability issues, most insurers, over the previous few years, have launched “guided” merchandise, the place the insurer guides the member to explicit consultants or hospitals.
This has helped to cut back prices. However Walters of Regency Wealth says the merchandise are usually not proper for everybody.
“A whole lot of salespeople default to those plans to get an inexpensive worth in entrance of the shopper, so purchaser beware,” he says.
Affordability issues apart, non-public medical insurance coverage additionally suffers due to issues from some that it’s going to fail to pay out.
Chris Mooney, non-public medical insurance coverage knowledgeable at LifeSearch, says medical health insurance is simply designed to cowl acute medical situations or issues an individual is more likely to recuperate from.
“Plenty of individuals are wanting into PMI once they have already got a power situation, for instance, diabetes,” mentioned Mooney.
“The fear is all claims can be linked to an present situation and subsequently not paid.”
Specialist adviser LifeSearch says that when trying to purchase a coverage, an vital selection is between moratorium, the place pre-existing situations from the previous 5 years are excluded for a set interval, and full medical underwriting, the place life-style and medical historical past are disclosed.
It prefers the latter as a result of “you get an inventory of situations that aren’t lined from day one”.
With progress on NHS ready lists more likely to be gradual, advisers say there are methods to maintain premiums low for these contemplating going non-public.
Isaac Feiner, managing director of specialist advisers Lifepoint Healthcare, says the best “entry level” for personal cowl is often a stripped-back coverage that covers inpatient and day affected person therapy, and probably restricted outpatient and outpatient diagnostics advantages and most cancers cowl.
“That offers individuals significant worth whereas maintaining premiums manageable,” says Feiner.
