Drop in Health Insurance Spending

A recent report has indicated that consumer spending on private medicine is down for the first time in 20 years. This obviously has implications for medical insurance companies but if you are planning to take out health cover we may see strong competition in the near future from companies vying for your business.

The report by health analysts, Laing and Buisson, found that in 2007, £345 million was spent by patients on operations and treatments compared to 2006 where spending was £374 million: a fall of 7.8 per cent. The figures did not include cosmetic surgery figures and when taking into account inflation the drop represents just over a 10% fall in spending.

The change in consumer spending is said to be triggered by two things. Firstly NHS waiting times have reduced.

The Telegragh reported that Ben Bradshaw, the Health Minister said, 'It is a mark of the faith that people now have in the NHS that 10 per cent fewer patients chose to pay out of their own pockets to go private last year - the first fall for 20 years.

'These figures show that patients are voting with their feet. More and more people are turning their backs on paying out of their own pockets for private health care because they now trust the NHS to treat them quickly, effectively and comfortably.'

The Laing report also pinpointed the economic recession as another reason why people were turning their backs on private health insurance and predicted that spending figures would drop further.

'Economic prosperity and business / consumer confidence in the past has driven demand for private medical insurance.

'A strong and predictable business environment and high employment in particular has corresponded with solid corporate demand for health and care cover.'

The current economic climate is creating conditions where people either cannot afford medical cover or feel that they cannot. The report says,

'The recession leads to a sizeable fall in demand for private medical insurance, as employers and individuals feel the pinch, and the economy takes time to pick up again.'

Health Insurance News UK has provided many articles on the best way to secure good quality, cheap health insurance and find ways to cut down on costs by being able to compare medical insurance cover and pick the policy that best suits you and your families needs. We will wait and see how the health insurance companies respond to the drops in health care spending.

Leaving Workplace Private Health Insurance

Apart from pensions, the main company perk that people appreciate is private medical insurance. Of all the people in the UK who have health cover 85% of them have it via their employer but when they leave their company it can be a shock to discover how much they will have to pay to keep their health insurance policy.

Individual polices are more expensive than company schemes and this fact cannot be avoided. However there are ways to find cheap medical insurance that does not compromise on care.

According to PruHealth 70-80% of people do not make claims on their workplace medical insurance policy. For these people it is easier to obtain lower cost private medical insurance. Additionally, people with a clean bill of health will be optimally placed to have lower premiums.

People who are mid-claim when they leave their employer may have difficulty. Continuation describes the process of transfer from your company medical insurance to an individual policy without re-underwriting. Re-underwriting could increase premiums dramatically and continuation may be the only option for those who are mid-claim.

Not all companies offer continuation for people who are mid claim. PruHealth, for example, does not. Standard Life Healthcare do. Julian Ross, head of policy continuation at Standard Life said, 'People on continuation terms are actually not particularly good business. They may just continue until they’ve finished their claim and then just cancel. But nevertheless it’s something we feel it’s appropriate to offer.'

Continuation is obviously offered to non-claimants too as these are more attractive prospects for health insurance companies. Often for non-claimants, continuation policies offer the best price option although it is still important to compare medical insurance providers to make sure you are choosing the best policy. Bupa has a team that works with group leavers in order to match their needs. Norwich Union Healthcare continuation customers are offered up 45% no claims discounts on their individual policies and Standard Life offer one month's free cover to non-claimants.

For a small extra cost employers may be able to ensure continuation of their employee health care policy after they leave their employment although according to Dave Priestley, sales director at PruHealth, only a very small number of employers take up this option.

Brian Walters, policy advisor for Healthcare Quotations Ltd, said that, 'Many group leavers assume that benefit levels and premiums will be similar to their group policies. So adjusting the client’s expectations is very often the first part of the advisory process.

'Some are confused and overwhelmed having looked at price comparison websites, which are no substitute for a needs analysis and a qualitative market review.'

Where are you Looking for Private Medical Insurance?

This week The Private Healthcare UK published their WebWatch report which looked at the internet habits of people searching for health, medical and private health insurance information online.

The survey found that more women than men were searching for health related topics. 54.95% of women were searching for these topics online compared to 45.1% of male searchers. Additionally 44% searchers for these topics were over 45.

The most searched for topics were obesity, weight and diets.

The top 5 most visited private medical insurance sites were:

-Bupa
-HAS
-Prudential Health
-ACA PPP Healthcare
-AllClear Travel Insurance
-Denplan
-WPA Health Insurance
-Norwich Union Health Insurance
-Westfied Health
-Standard Life Healthcare

Sites used to compare medical insurance such as Private Healthcare UK and MoneySupermarket were also very popular but were not included in the survey statistics.