Comparison Websites

Professor Catherine Waddams, a competition expert, has warned that comparison websites 'have an obvious incentive' to feature the companies that offer them the most. Health insurance comparison sites are one very convenient way that helps people to look for the best health insurance for them and their family. In theory they provide a comparative summary of all the companies that provide what you are looking for.

However, Professor Waddams told BBC Radio 4's Money Box programme that financial comparison websites 'have an obvious incentive to feature companies that give them the best rewards and companies have an obvious incentive to be featured prominently.'

Ms Waddams warned the public to be sceptical and make sure that they are not being taken for a ride. Only three out of the five sites she reviewed are open about how they make their money.

There are several ways in which sites make their money including the extra payments for sites that are featured more prominently. Other ways are 'click throughs' were a health insurance company will pay the comparison site for every person that clicks onto their site. Other ways for the comparison sites to make money is when people actually apply for insurance with a company.

It's a big market with over 5 million people a month using comparison sites.

Richard Mason, managing director of comparison site moneyextra.com, said that in his opinion it should be clear which sites are sponsored and which are not.

It is also important to be aware that not all companies are on every comparison site. Some do not wish to be included and others do not have web technology which is compatible with the comparison sites.

Recently a Code of Practise has been drawn up to help make comparison websites as transparent and accessible as possible.

Sue Regan, Chief Executive of the Resolution Foundation said:

'With the roll out of a national money guidance service next year, there is likely to be even more consumers turning to comparison websites to purchase financial products. This code of practice is a positive first move towards consumers having all the information they need when they make a financial purchase. It is a welcome first step in self-regulation of the comparison website sector.'

The problem for the consumer is that the medical insurance market is huge. Comparison sites provide a good way to get an overall picture of the medical insurance market quickly but it is still important to do your own individual research and make sure you are happy with the information that is presented to you.

Female CEO for Freedom

As reported by Health Insurance News women at the top levels of business are still in the minority. Freedom Healthnet however has a woman, Nahid Salehi as its chief executive officer.

Nahid Salehi launched Freedom Healthnet's private medical insurance policies in 2003 with the aim of providing the best health insurance whilst still keeping costs down.

Freedom provide traditional health insurance cover but instead of paying for your treatment they pay you. And then you can do as you wish with the money.

'We give them the freedom to our clients to choose when and where they want to have treatment. They can go anywhere in the world,' said Ms Nahid.

Currently Freedom offer three levels of cover and are still providing one of the cheapest private medical insurance on the market. You arrange your own treatment which can be at home or abroad. Alternatively you can choose to be treated by the NHS and keep the money to use as you wish. Premium costs are kept low because their administration costs are low.

Private Medical Insurance Growth

Despite the recession a new report by analysts Laing and Buisson states that the private health insurance market is still growing. 7,562,000 UK citizens have private medical insurance policies or trusts and this figure represents 12.3% of the population. This report contradicts other reports which have registered health insurance market decline.

In comparison to 2006 and 2007, where the industry experienced 2% growth each year, the increase last year was a modest 0.6%. Nonetheless this is a significant growth which came from individual policy holders rather than business policyholders. This sector of the business declined by 0.2% in 2008 despite a growth of 5.6% over the previous two years.

Philip Blackburn, a Laing and Buisson economist said: 'Individual purchasing of PMI held up well in 2008 as insurers offered a wide choice of policy options and budgeting, and insurers worked hard on retention, though there is a growing ‘trading down' trend, as individual spending levels remain relatively fixed while PMI costs continue to rise strongly.'

The figures suggest that people are reluctant to give up their private medical insurance. However rising health cover costs are forcing people to look at alternatives that perhaps provide less cover at a cheaper cost. Health News UK has been giving advice over the last few months on how to find lower cost policies that still offer the best health insurance cover.

According to Laing and Buisson some people are likely to drop their medical cover in 2009 as rising levels of unemployment are likely to reduce people's disposable income.

Blackburn said, 'The ongoing recession in 2009 is certain to have a more acute impact on PMI demand than the previous year as increasing unemployment across industry and services delivers a fallout in employee benefits, and downward pressures on household incomes and personal net worth (savings/investments) deliver more cautious individual spending, with reductions in many purchases that are considered non-essential. '

Using an Independent Advisor

There are three ways to find the best health insurance for you, your family and your business: independently researching the market, using web-based comparison sites or taking the advise of independent advisors. This article outlines the advantages and disadvantages of using a third party to help you.

Independent advisors work on a commission basis and are rewarded with a fee from the health insurance companies for selling you their policy.

ADVANTAGES

The Right Policy for you
An independent advisor should have a thorough knowledge of a range of policies. They will spend time getting to know your needs and this enables them to help you to choose the right policy for you.

Time
A reputable advisor will save you oodles of time. Their job is to know the policies they recommend inside out, saving you the time it would take you to research each policy.

Money
Agents often have deals with insurance companies and may be able to provide discounts that you may not be able to get if you applied for a policy alone.

Disputes
When you go through a third party there is more room for misinterpretation. If you have a problem with a private health insurance claim and you can prove that you were not initially advised correctly by your broker then the main onus may not be on you but on your advisor and a claim may be upheld when it might otherwise not be.


DISADVANTAGES

Vested Interest
When you are looking for health cover and no one is more invested in your wellbeing than you are. No matter how professional and helpful an advisor is you are ultimately responsible for the choice of health cover that you make and no-one will be more interested in getting it right that you.

Privacy
You may not want to discuss your health issues with an advisor. Some people prefer to complete on-line forms as they are embarrassed to discuss their health issues face to face.

Choice
Each agency will have a range of policies it can advise you on. No agency will have detailed knowledge of each and every policy on the market.

Split Loyalties
It is important to be aware that medical insurance companies offer advisors incentives to sell their policies. However a reputable advisor will only have your best interests in mind and will not be swayed by any incentives offered.

Accuracy
When a third partly is involved you increase the possibility of misunderstanding and misinterpretation of policy detail. Working directly with a provider should mean less room for error. An insurer should be fully trained on their specific policies and should be able to answer detailed questions. However an advisor will have a range of policies that they work with and may not be as familiar with the details of each. However the onus is on them to find the answers to any questions which you may have about any policies that they sell.

It is important to be prepared before you visit an advisor. Familiarise yourself with the market a little and be ready with questions about health insurance . This will help you to get the most out of your meeting with the advisor.

New Independent Advisor

A new health insurance advisor has opened for business. BJIC Health is offering products from a range of well known medical insurance providers. They are based in Deeping St James and headed by owner Keith Laws who has experience in various medical insurance roles.

They offer health insurance products for both individuals and corporate organisations. They also offer dental insurance, critical illness cover and international private medical insurance as well as travel insurance.

Keith Laws said, 'We have obtained some amazing deals through our suppliers that allow us to offer some of the best prices in the UK.

Currently we have negotiated agreements with major UK insurers, such as Bupa, Norwich Union and Pru Health.'

Mr Laws advises that people should seek the help of an advisor as the health insurance market is growing ever more complicated:

'Medical insurance can be a complicated product for consumers to get their head around, and with more and more policies in the marketplace, good advice is essential.

As a specialist medical insurance broker, not only do we give our clients advice on all the products on offer, but we also provide an overall review on the best-priced ones as well.'

BJIC Health, as with all medical insurance advisors in the UK, are bound by the FSA (Financial Services Authority) which is the regulatory body for all UK insurance services. They 'regulate financial services and protect your rights' so if you have any concerns about any insurance services you can contact the FSA for advice.

Health Insurance for the 60+

Statistically speaking the older we become the more likely we are to suffer ill health so it becomes even more important to feel that we are covered if we do fall ill. Private medical insurance gives peace of mind. Also, at this time in life we are often better off and feel we can afford to look after ourselves a little more.

Can I take insurance out at any age?
Private health insurance companies vary in their policy requirements. On average, polices will not take on a new client who is over the age of 75 however there are variations to this, for example Bupa will provide cover if you are 79, under their Client Choice policy. AIG have an upper age limit of 70 and BCWA will only insure you if you are under 64. If you are already have a health insurance policy however you will usually be able to continue with it.

Will I need a medical?
Generally you will not need a medical examination. However there may be different conditions of application depending on your age. There are moratorium or fully underwritten health insurance policies. For example most companies set an age limit after which you will be require to take out a fully underwritten health insurance policy. For Freedom Healthcare Ltd, for example, the age limit for this is 66. So, if you are 66 years old or over you will need to fill in a detailed medical questionnaire. Before this age you can take out what is known as a moratorium policy which does not require you to do this.

Costs
Unfortunately health insurance premiums do rise as we get older. This is purely because the risk of ill health increases with age and medical insurance companies have to protect themselves against this risk.

Percentage increase costs between age groups
40-50 year olds: 30%
50-60 year olds: 44%
60-70 year olds: 55%
70-80 year olds: 56%

Here is a cost comparison for a range of policies for a 63 year old man. All these are for the most basic of cover offered for each company and represent the monthly premium cost:

AIG Health Care £90
CS Healthcare £42
Freedom Healthnet Ltd £71
Health On Line Personal Choice £80
Norwich Union Health Solutions £123
Universal Provident £103

As you can see there is a great variation in the costs of policies available so it is worth looking around for the best health insurance policy for you. Equally policy will offer different levels of cover so it is important to check details carefully. It is also worth noting that basic cover may not include some features which may be important to you. Add-on products will give cover, for psychiatry or complimentary treatments which may not be included in the basic policy.

Top Medical Health Insurance Providers

In the UK there are hundreds of health insurance policies. The data below shows you the proportion of the health care market that each of the major private health insurance companies currently hold.

1. 42% Bupa


2. 24.5% AXA PPP Healthcare


3. 10% Norwich Union Healthcare


4. 7.5% Standard Life Healthcare


5. 3% WPA


6. 2% PruHealth


7. 8% Other

The advise is if you want to find the best health insurance for you, your family or your company, that you do your research. Initially look at several companies and familiarise yourself with their policies. If you get in touch with an intermediary they will be in the best position to help you compare health insurance policies in order to find the best policy for you.

Alternatively, if cost is a very important issue for you then comparison websites such as moneysupermarket.com will also help you to find cheap health insurance that does not compromise on quality.

Health Screening Saves Lives

Private medical insurance companies encourage their clients to have health screens as they are a preventative form of medicine which can save lives. This week research has been published that indicates that screening can detect ovarian cancer before there are any symptoms.

Ovarian cancer is notoriously symptomless and because of this is often hard to treat. The 4 year UK study found 97 tumours in 802,636 women aged between 50-74. They divided the group into three: those who had no treatment, those who had a yearly ultrasound and a blood test and the third group had just a yearly ultrasound.

The Ultrasound method picked up 75% of cancers, and the blood test method 89%.

Dr Ian Jacobs, director of the trial and the Institute for Women's Health and University College London said, 'We have now demonstrated we can pick up the vast majority of women with ovarian cancer earlier than they would have otherwise been detected and before they have symptoms, and that a good proportion of those women have earlier stage disease than we would normally expect them to have.'

This type of screening for ovarian cancer is not yet available within the NHS or private health insurance however the results are probably encouraging enough to prompt an NHS review.

Health Insurance News reported this month on a new health screening scheme offered to men at Football matches. Statistically men are reluctant to visit doctors and are shy about having medical check ups therefore the department of health is trying to redress the balance and encourage men to seek more medical help.

Basic health screens are available through the NHS but the private medical sector provides a more comprehensive set of screens. Bupa for example are currently offering 8 different screening packages including Bupa Advanced Health which includes 46 tests. It costs up to £728 and gives you an hour with a doctor.

It is well worth looking at the best health insurance company when it comes to screening as several companies offer you discounted rates for health screening. Private medical insurance company, PruHealth, for example, also offers reductions in premiums if people have health screens. It makes business sense: early detection of illness means that people can stay healthier for longer. The healthier they stay the less a company has to pay out. As a reward, your premiums are lower.

Pregnancy and Private Medical Insurance

Traditionally in the UK, private health insurance does not cover pregnancy. The everyday care and monitoring of pregnant women and their babies is carried out through NHS services. You can of course opt to go private and pay for the services of a midwife and obstetrician should you wish. However there is a limited provision for care in pregnancy that is provided by some health insurance policies.

NHS
Currently NHS antenatal care is excellent. Pregnant women have regular appointments with their GP and midwife and are offered several tests to ascertain their own and their babies health. Women also have scans at the hospital and regular check ups after the baby is born. There is also a Health in Pregnancy grant, which is worth £190 and can be applied for through forms given by GPs and midwives. This is available to all pregnant women and is not means tested.

PRIVATE HEALTH INSURANCE
In terms of provision for pregnancy in health insurance policies it is important to note that each policy is different and is you are planning a pregnancy it is important to check the provision in your policy. Some policies do provide any cover for pregnancy related issues. If you are planning a baby however it may be well worth checking out the best health insurance cover for pregnancy.

AXA PPP Healthcare, for example, state that they do not pay for 'any costs related to pregnancy or childbirth or for treatment of a medical condition relating to pregnancy or childbirth...'

Norwich Union cover some complications of pregnancy and childbirth 'provided the mother has been on the policy for at least 10 months. They also provide a cash benefit of £100 on the birth of each child if you go free through the NHS. They also cover certain obstetric procedures including: miscarriage, hydatidiform mole, still birth, retained placenta, pre-eclampsia, eclampsia, obstetric diabetes, caesarean sections (in certain circumstances) and ectopic pregnancies. It is important to note that their policy document states that these things will be 'considered for cover.'

Standard Life offer a more comprehensive level of cover in their top level policy, Primecare Gold. After two years of membership they include private consultations and tests as long as you have a normal pregnancy. This is capped at £3,000 or alternatively you can have £100 cash benefit on the birth of each child if you have not used this benefit. You are also covered for some complications of pregnancy.

PruHealth also offers a £100 cash benefit on the birth of each child but only covers you for ectopic pregnancy, hydatidiform mole, post partum haemorrhage, miscarriage, retained placenta and stillbirth.


PRIVATE
Most private hospitals do not have a full pregnancy and birth service. They are mainly restricted to the London area. If you do opt for paying privately the average costs are as follows:

Birth
Normal birth: £2,880
Caesarian (and care for 24hrs after): £3,790
Obstetrician Consultant: £3,000 - £4,000

Untrasound
£200 - £300

Chronic Villus Sampling Test
£400

Private Midwife for whole pregnancy
£4,000 - £5,000

In summary, the NHS is available for free and excellent antenatal treatment. Many private medical insurance companies provide no cover for any maternity related treatments. However within those that do there is a wide range of different things on offer. Most companies offer £100 cash back with the birth of each child and most cover only complications of pregnancy and birth. Alternatively you can go privately. This is a very expensive option and there are not many hospitals which cater for totally private maternity care and birth.

Health Insurance for Cancer

Cancer care in the private medical insurance business is in jeopardy with discussion about removing it from policies. Gil Baldwin, managing director of Norwich Union said 'I don't think any provider will strip out cancer completely because the political landscape doesn't allow for that. ' But why is removing cancer from policies even an issue and what does that mean for the future of health insurance?

The problem is the rising costs of treating cancer. Better drugs are being released all the time but they are very expensive. Herceptin, for example costs around £60,000 a year and Avastin £70,000. The rise in the cost of cancer drugs has led some insurers sticking quite strictly to the NICE (National Institute for Health and Clinical Excellence) guidelines about cut-offs for some drugs, for example Herceptin.

“The cost of drug treatments is inflationary and at the same time our customers expect more for their money – more from us and their health professionals,” said Baldwin.

Insurers are concerned that soon the costs of paying out will far outweigh what they can charge in health premiums. Norwich Union Healthcare, for example, spent 18% more on cancer care in 2007 than it did in 2006.

Professor Sikora medical director of CancerPartners UK (an organisation set up to work in partnership with the NHS, the independent sector, and the voluntary sector, to bring high quality cancer care closer to patients) says that only 10% of cancer care patients are treated within the private health insurance sector however it is the main reason that people site for taking out medical insurance and is responsible for 1 in 8 medical claims. The NHS is struggling just as much as the private sector as peoples expectations rise.

Another difficulty for the consumer is the fact that health insurance companies are designed to only treat short-term (acute) conditions. If a cancer is considered curable it could be said to be 'acute' but if you become terminally ill then you may no longer be covered under the terms of your policy. Insurance companies can reclassify your illness from acute to terminal during your treatment.

Bupa's Select Heart and Cancer Policy is specifically designed to cover you eligible cancers and acute heart conditions and includes organ transplants related to these two conditions. Please note that this does not cover 'long term illnesses which cannot be cured (usually referred to as ‘chronic conditions’)'

Virgin Cancer Cover is a very different policy which does cover terminal illness (as long as the claim is not made withing 18months of taking out the policy). The only cancers that it does not cover are: non-melanoma skin cancers and early forms of cervical cancer which make it the most comprehensive cover on the market although they will not cover any cancer claim made in the first 90 days of your cover. This policy pays out a lump sum up to £500,000 depending on the level of cover you take out.

Pru Health are a traditional health insurance company have amongst the best health insurance cover for cancer. They cover 'treatment for all stages of cancer. There are no financial limits on inpatient and outpatient cancer treatment on any plan.'

With many new developments in the treatment of cancer and rising drug prices it is expected that more companies will bring out specialised cancer care products as the current climate would make it very difficult for them to drop their provision for cancer cover.

Can Taking Out Health Cover Improve Your Wellbeing?

The PruHealth Vitality Index, published on the 9th November, found that there is a huge gap between people's perception of what it means to be healthy and the reality of the impact of lifestyle, diet and fitness levels on our health. The report also published statistics that suggest that the best medical insurance cover would promote wellbeing with 81% of the participants agreeing that it is important for "medical insurers to help members manage and improve health."

With such a gap in the public perception of their health and the reality, what pro-active help can you expect from your provider when you take out health cover?

Pru-Health actively encourages you to look after your health via their Vitality programme which is designed to promote 'an active lifestyle and improve your health'. They have a range of incentives including a personal Health Review which assesses your needs and encourages you to stop smoking, get regular health screens as well as to exercise and eat well. You can collect points for taking preventative measures, including participating in regular exercise (at reduced cost through fitness companies Cannon, La Fitness and Virgin Active) and the more points you get the lower your premiums go. You can even get extra points for buying fresh fruit and veg at Sainsbury's!

Norwich Union have an online Health Planner which assesses your health and lifestyle and provides guidelines to improvements in diet and exercise. They are also trying to cater for psychological wellbeing by providing a Stress Counselling Helpline where experienced counsellors are available 24/7. They also have a Stress Free Living Guide and the Guide to Services for a Healthy Mind. With all the evidence there is to suggest that the health of the mind and body are linked, this focus on mental health shows a very progressive attitude to overall wellbeing. Additionally, through their medical insurance you can also have access to 40% reduction on membership to a range of UK health clubs.

Standard Life offer a Healthy Reward Service which includes a tailor-made online Health and Well-being report which will advise you on changes that you need to make in the following areas: sleep, nutrition, exercise and stress. To support this they also offer a telephone counselling services. They also offer a discount on health screens with Nuffield Proactive Health.

So, if you are looking for incentives to stay healthy and improve your wellbeing, the company which seems to provide the best health insurance cover is Pru-Health as it offers you reduced premiums if you do actively pursue a healthier lifestyle. They put their money where their mouth is!

If you are looking for an overview of wellbeing and would like some tips on improving your health there is a very useful free download produced by the Health Insurance and Protection Magazine.

Beginner's Guide to Private Health Insurance

This blog aims to answer some questions for people who are considering taking out a private health insurance policy.

What is Private Medical Insurance?
Usually private medical insurance covers the costs of the private medical treatment of acute conditions that start after your policy begins. 'Acute' refers to conditions that are short term.

Why would it benefit me to take out Private Medical Insurance?
There are many reasons why people choose to take out medical insurance:
A desire to be treated quickly and have more time with specialists
To increase their choices: which hospital they go to and which specialists they are seen by
A concern for the high rates of MRSI and other superbugs within NHS environments
A desire to be treated in a more comfortable and private environment

How do I choose which Insurance Company to go with?
Research is key to this in order to find the right policy for you. Private medical insurance is sold in three different ways:
Directly from the insurance companies
Through independent advisors
Through agents (bank, building society or retail outlet, such as a supermarket)

It is important for consumers to look carefully at all policy documents before making a decision. Independent advisors will search for the best policy for you but if you are dealing directly with an insurance company, it is important to be aware that they can only advise you on the best health insurance policy for you from within their own portfolio.

How do I know if I am dealing with a reputable company?
The FSA (Financial Services Authority) is the regulatory body for all UK Insurance Companies. They 'regulate financial services and protect your rights' so if you have any concerns with an insurance company you can contact the FSA for advice.

What will happen when I take out my medical insurance?
Insurance companies do not cover you for any medical condition that you have at the time of taking out the policy, so it is very important to be honest about your medical health because if you later make a claim and your insurance company discovers that you did not disclose everything, your insurance will become null and void.

When you are taking out your policy you will find that companies work in one of two ways:
Full Medical Underwriting where they ask you a series of detailed questions about your medical history.
Moratorium Underwriting where they do not ask details of your medical history but will check your details with your GP should you make a claim.

You will receive a full policy document from your insurer which you are advised to read carefully.


What will be covered?
This varies from policy to policy, and it is important for you to choose the best medical insurance for you. A broker can help you to compare medical insurance policies. Some questions to think about:
How much can you afford to pay each month? What level of cover would you like? Do you want your insurance to cover all treatment costs or would you be willing to part pay? Do you want your cover to include diagnostic tests? Do you want outpatient cover?

What will not be covered?
Generally, private medical insurance is not designed to cover long term treatment or chronic conditions. This list of exclusions is taken from the ABI's consumer guidelines.*

• Going to a general practitioner (GP)
• Going to Accident and Emergency
• Drug abuse
• HIV/AIDS
• Normal pregnancy
• Gender reassignment (sex change)
• Mobility aids, such as wheelchairs
• Organ transplant
• Injuries you get from dangerous hobbies (often called hazardous pursuits)
• Conditions you had before taking out the insurance (commonly known as pre-existing conditions)
• Dental services
• Outpatient drugs and dressings
• Deliberately self-inflicted injuries
• Infertility
• Cosmetic treatment
• Experimental or unproven treatment or drugs
• Kidney dialysis
• War risks


How much will it cost?
The cost depends on the kind of medical insurance cover that you choose. It is advisable to research the costs of a range of treatments and then carefully compare health insurance policies.

If I change my mind, can I cancel the policy?
You have the right to change your mind, and have your money back within a set period (usually 14-30 days) after purchasing your medical insurance.

*For further Information
The Association of British Insurers represents the interests of the UK's insurance industry and has published a comprehensive consumer guide for people who are looking to buy private medical insurance.