30 Years of the Six Week Option

The six week option is offered by some private medical insurance companies as a way of keeping insurance premium costs down. This is the 30th anniversary of this popular product option.

The six week option was introduced in 1979 by Dudley Lusted from AXA PPP Healthcare as part of a health insurance plan that was more affordable. With this type of plan customers agree to have treatment on the NHS if they can be seen within a six week window. If not then they are seen privately as normal.

Today a quarter of AXA medical insurance clients use the six week option. Lusted said:

'People don’t mind using the NHS if they can get in. There is nothing wrong with the health service but there are large waiting lists. The logic is that if you have to wait for treatment, this is the plan for you,” he explains.'

Aviva and Standard Life are the only other private medical insurance providers that offer the six week option. Kevin Murdoch, senior proposition development manager at Aviva Healthcare says that the six week option can reduce premiums by up to 20%. The recession has created a greater interest in this type of product. Murdoch says:

'The six week option is a great way of reducing costs and making PMI more affordable. While PMI sales are up year-on-year, we have seen an increase in enquiries from customers about how to reduce costs. They still want PMI but they want to reduce their premium, and the six week plan is a good way to do this. Everyone is strapped for cash at the moment.'

Although NHS waiting lists have been getting shorter and shorter they have only recently reached their target of 18 weeks. This type of plan reduces your waiting time by a third.

On the downside, if you are admitted to an NHS hospital as an emergency on this type of policy you cannot then transfer as a private patient which is different to other health insurance policies. You must stay within the NHS for your treatment.

One common misconception about six week plans is that you have to wait six weeks before you see a consultant. This is not the case. You can see a private consultant straight away. It is only if you need treatment that the six-week option comes into play.

The NHS is likely to see a slow down on spending in the coming years which could increase waiting times once more and the six week option plans are likely to increase in popularity if this occurs.