Private Health Insurance Overcharged?

Consumers are likely to be outraged by the current news that some medical establishments may be charging health insurance companies up to 50% more for treatments than they do private individuals. Ultimately what consumers will ask is whether premiums could be cheaper if health insurance companies were being offered the same deals as independent self-pay patients?

An article in the Daily Mail last week revealed that one patient was sent two bills by accident. One bill was sent to them as an individual for an MRI scan for £477 and another one which charged them £720 for the same treatment as a private health insurance patient. On the last invoice they were asked to ignore the first invoice 'as we were unaware patient was insured'.

Industry experts argue that over-cutting costs will ultimately lead to an unsustainable business model and will decrease the quality of care and that most people who use private medicine do so via either individual or corporate health cover. This means that companies can afford to offer independent individuals reduced treatment costs particularly if business is slow. So, it could just be a case of self-payers having been offered particularly silly reductions rather than medical insurance clients being ripped off.

However, Steve Broker from Consumer Focus said, 'This seems a clear case of double standards. Any additional costs have to be justified and should be made clear to the patient.'

The chief executive of the patient's health insurance company WPA, Julian Stainton said, 'In fact, and in law, every patient receiving treatment in the private sector is a self-pay patient.

'The legal position is that prices should be fair, displayed, clear and readily understood; they are not. The public has every right to expect at least as much consumer protection buying healthcare as when they buy any other goods or services.'

With some less traditional health insurance policies you can get the best of both worlds. Freedom Healthnet Ltd offers a cash payment for your in-patient treatments should you fall ill. This means that you have all the security of private health insurance and also the buying power of an independant self-payer. You take the cash and you make the choice of where, when and even if you pay for your treatments. You can choose to use the NHS and keep the cash if your treatment time is reasonable. Freedom can offer cheap health insurance because you take on the responsibility of choosing, arranging and paying for your healthcare so their administrative costs stay lower.

HealthFund also offer an alternative private health insurance. As part of their policy they have introduced a savings fund where you can withdraw money and spend it on health care in anyway that you choose, including treatments such as plastic surgery which is usually prohibited under normal insurance policies.