Good Levels of Satisfaction

In previous years the health insurance industry had a bad reputation for high levels of customer dissatisfaction. This image has improved and the UK now has one of the most reliable medical insurance industries in the world.

The poor image that health insurance had was not totally unfounded. The main complaints were about people not being able to get their treatments covered when they had been expecting to do so.

Policy definitions and procedures have now been tightened. It was inevitable. The medical insurance industry's reputation was being tarnished by sensational reports of unfair treatment in the tabloids.

The Association of British Insurers (ABI) who have most private medical insurance companies as part of their membership, took the lead in generating guidelines which were fairer to consumers. The industry on the whole has adopted its proposals and the statistics reflect higher levels of customer satisfaction.

Non-disclosure
One of the main problems occurred because of health insurance non-disclosure. Now companies have developed better ways to avoid this. Non-disclosure refers to customers not giving the full medical facts about their history. This can come about for several reasons including health insurance companies not asking the right questions in the right way when they are taking details from a new customer.

Evidence of non-disclosure can invalidate a claim. And this is where problems can really get out of hand.

The ABI proposed that customers had to be treated fairly despite problems with non-disclosure. Instead of ruling a claim to be null and void they proposed that part-claims could be honoured depending on the nature of the non-disclosure.

Standard Life Healthcare, for example, have integrated the Treating Customers Fairly diective into their company policies:

'We believe that the Treating Customers Fairly (TCF) principles-based initiative by the Financial Service Authority (FSA) in the United Kingdom is complementary to our approach to all our customers. TCF requires us to assess and monitor our performance against our customer values in a robust way. To do this we have established a group TCF policy with standards that Standard Life group’s UK Business Units1 must adhere to in relation to the six TCF outcomes.'

Complaints
When people are not happy with the treatment they receive from a health insurance company they can follow the company's complaints procedure. If they are still not happy they can take the matter to Financial Ombudsman Service (FOS).

FOS have final say over whether a claim is upheld or not and they regularly publish their statistics. This makes health insurance companies accountable. If they have high rates of upheld complaints this filters through to the media.

Since the changes in the medical insurance industry complaints to the FOS have declined and so have the number of cases that are upheld.

Currently according to Melissa Collet from FOS only 1% of insurance complaints were about health insurance and only 31% of complaints are upheld whereas overall in the insurance industry the figure stands at 70%.

Only 514 complaint cases out of 127,471 were about private medical health insurance. Melissa Collet congratulated the industry on its low levels of complaints. This is very reassuring for those with health cover or those considering taking it out.

Inexperienced Doctors in NHS

Junior doctors have to learn. However, how do we feel about them practising on us? Recent figures from the NHS shows the high level of mistakes that are made by junior doctors during their first four months in a new role. Health insurance has many advantages but for the consumer surely one of them must be that private hospitals do not take on trainees who, although very well meaning, are inexperienced.

Every August junior doctors rotate to a new position as part of their medical training. In the first week of this rotation there is an increase in the hospital death rate - by 6%. The stats show that figures continue to be poor for the first four months of the rotation before they go back to normal.

In one example they reported that 28% of junior doctors in anaesthetics were more likely to cause 'undesirable effects' like nerve damage.

According to another study by the Imperial Centre for Patients Safety and Service Quality at Imperial College London found that misdiagnosis may be a very significant problem in the NHS. The statistics show that as many as one in six patients may receive a misdisdiagnosis. Researchers said that one of the reasons for this was a reluctance of doctors to ask for help from senior staff.

Sandra Patton, a specialist clinical negligence solicitor at Kester Cunningham John, said:

'We are regularly approached by patients who have been misdiagnosed.

'Sometimes, such errors can have devastating consequences for our clients and I have, for example, dealt with numerous cases involving misdiagnosis of cancer that otherwise could have been treated and cured.

'There are many reasons why these errors happen and it is very disturbing that we are still seeing the same errors we were seeing 20 years ago.

'Lessons need to be learned every time there is a preventable error and action taken to stop it happening again.'

Private medicine in the UK does not employee junior doctors therefore the problems that their lack of experience creates is not an issue when you take out medical health insurance. Of course, even though it is hard to contemplate in the health sector, human error is inevitable within all professions. However private health facilities usually have very high standards of recruitment which helps to eliminate some of the problems.

Bupa's Great North Run

Bupa, the health insurance provider, is well known for supporting charity events. As the name suggests, this Sunday they will be sponsoring the Bupa Great North Run.

An estimated 54,000 runners will be running on the streets of Newcastle on the day. The race will be televised live on BBC1 from 9.30-13.30 on Sunday and it will also be broadcast on Radio 5.

The nominated charity for this event is the Alzheimer's Society. The Alzheimer's society is delighted with the extra publicity for their cause and the funds that they will receive. The Bupa runs attract a lot of celebrity contestants. This year Yasmina, winner of the BBC show, The Apprentice, will be participating:

'My Aunt has Alzheimer's disease and was only 55 when she was diagnosed with this devastating illness. People don't realise there are over 15,000 younger people with dementia in the UK - that's people under 65 years old. This number is likely to be an under-estimate, and the true figure may be up to three times higher. Dementia isn't just a natural part of old age and it isn't just about

'I feel privileged to be able to run the Bupa Great North Run to help raise awareness and funds for other families affected by dementia and lead Alzheimer's Society's team, Bupa's nominated charity for the Bupa Great Run series, to victory!'

Bupa and the Alzheimers Society have teamed up to launch the first ever Dementia Champions programme in 130 Bupa care homes across the UK. The programme aims to develop good dementia care and was piloted in 6 Bupa care homes during its development.

Graham Stokes, Head of Mental Health, Bupa Care Services says:

'Bupa is committed to providing highly-personalised care for people living with dementia. We believe that specialist training of care home staff is a key factor in ensuring our residents enjoy the highest possible quality of life.

'The Dementia Champions programme aims to improve quality of care and quality of life for people living with dementia. As a healthcare leader, it's a goal we at Bupa share - and we hope that we can also set a new standard for the dementia care sector'.

Bupa, who are the largest medical health insurance company in the UK are also providers of care services and run diagnostic health centres across the UK.

Women in Health Insurance

Most of the directors in the health insurance industry are men but the Kent and Sussex Courier spoke to Victoria Georgalakis customer service director for Axa PPP Healthcare to see what motivated her to succeed in the industry.

Ms Georgalakis said, 'I was certainly born with a competitive streak and have always preferred to be busy, but am not as career ambitious as many people assume. It is more about doing something interesting and rewarding than a specific desire to be more senior.'

Overall the top positions in British business are still dominated by men but is the medical health insurance business any different? Ms Georgalakis who is 42 with a budget of £25m and a staff of 680 said,

'Although I do not believe sexism exists in AXA PPP that does not mean it is not present elsewhere, plus it is quite possible there are simply a lower proportion of women compared to men who want the boardroom positions.'

As reported by Health Insurance News UK the medical insurance industry as been accused of sexism in the way it underwrites its policies. Women's health insurance for, example, can be more expensive. This difference is justified as women make more claims. The European Commission is intent on changing these laws which will apply to sex discrimination in all types of insurance including car insurance.

Looking for Health Insurance? 7 Top Tips

If you are thinking about taking out medical health insurance there are several things which you need to think about before you start looking. There are many policies out there so you need to be armed with a good idea of the different options which may be available to you.

Budget
Before you start your search for private health insurance you need to have a budget in mind. This will enable you to find the best medical insurance for you without worrying about the cost of monthly premiums later on.

Reducing Costs
There are several ways that you can reduce the cost of private medical insurance:
-Paying higher excesses. If you are prepared to pay more on an excess then you will be able to find cheap medical insurance. Some policies offer huge excesses for much reduced premiums.
-The six-week option (waiting to see if the NHS will treat you within six weeks before you use your private health insurance).
-Co-payment where you agree to pay part of your treatment costs up to a certain level.
-Shopping around. In the current climate companies are offering incentives to get your business.
Family policy
Do you want to add your children to your policy? Some companies offer reduced premiums for family policies.

Exclusions
Each policy will have a list of exclusions which are conditions and situations which a health insurance policy will not cover. The basic things to be aware of is that health cover is designed to cover unexpected acute medical conditions. It will not cover long term illness and it will not cover any conditions which you are or have suffered from in the last two (sometimes up to five) years before taking out a new policy.

Add-ons
Companies offer add-on products which are designed to extend the basic scope of a policy and offer additional benefits. Examples of this are: psychiatric cover and complimentary therapies. Its important to check details carefully as some companies will offer things as a standard part of each policy and some will not.

Moratorium or Full Underwriting
Depending on your circumstances you will either be offered a policy which either requires you to fill in a detailed health questtionnaire (full underwriting) or one where you wil only be asked basic questions (moratorium). Which one you are offered will depend on a number of things: your health history, your age and the health insurance company policy.

Buying Options
You can buy private medical insurance in three main ways: Using a reputable broker who should be able to help you to compare policies and pick the right one for you. Using internet comparison sites which provide a brief summary of the benefits of each policy and finally, contacting the private medical insurance companies directly.

Be Cared For In Luxury

Whether you have individual or company medical health insurance or you pay up front for private health care you will be guaranteed several things if you need a hospital stay:

Cleanliness
A private hospital will have extremely high standards of cleanliness. Your providers will not be having to penny-pinch and cut corners. You will more-than-likely have your private room damp dusted everyday and know that after the last occupant of your room left, they will have scrubbed your room from top-to-bottom. Clean, freshly laundered towels are provided every day for you to use.

Research results have shown that fears about NHS cleanliness is the top reason that people have for choosing to take out private health insurance. Fears over MRSA and c-difficile are very real.

High Staff Ratio
In a private hospital you will have a higher staff to patient ratio. You can be assured of receiving attention and care as and when you need it. NHS wards are often understaffed, leaving patients having to wait too long for essential care.

A Private Room
Being able to recover peacefully in hospital is very important and so is privacy. Studies have shown that recovery is quicker when patients feel more comfortable. Having procedures performed behind a thin curtain can be particularly embarrassing for people and confidentiality is always an issue as consultants and nurses have to speak to patients in front of others when they do their NHS rounds.

Good Food
NHS food is notorious for being unappealing. In a private hospital you will receive nutritionally balanced, interesting and tasty food, more akin to a restaurant than an institution. A report for the consumer organisation Which? Found that a third of people who had had NHS hospital food in the last twelve months were unhappy with it.

Luxurious Facilities
In a private hospital you will have your own, clean, private room with plenty of storage space, a private bathroom and a TV. It will be peaceful and will feel more like a hotel than a hospital. You will be able to keep in touch with the outside world easily. Usually there will be Wi-Fi and you will always have you own telephone so that you can keep in touch with family and friends whenever you want. Your choice of Newspaper will be delivered to your room every day.

Visiting Times
Research has shown that being able to keep in touch with family and friends is very important for patient recovery. Because a private hospital provides private rooms then the restrictive rules of NHS hospital visiting times are not necessary. As long as the doctors and nurses think its medically wise to allow you to have visitors there is usually a lot of leeway as to when they can come.

Additionally, Your visitors will also be treated well as they can be served with refreshments in your room and do not have to rely on a busy canteen or corridor vending machine.

Many private clinicians also work in the NHS so your care in both establishments will usually be exemplary. Both nurses and doctors are trained to high standards in the NHS however, in private medical care they will have more time to attend to your medical and private needs. You will also have the luxury and high hygiene standards around you that provides the psychological peace of mind that will help for a speedier and more pleasant recovery.

Disability and Health Insurance

There are two issues related to disability that are important to health insurance policies: firstly, the medical cover available for those with disabilities and secondly the cover provided should you become disabled whilst you hold a medical insurance policy.

Health Insurance for the Disabled

The Disability Discrimination Act 1995
In 1996, the Disability Discrimination Act made it illegal for an insurer to refuse to cover to a disabled person, or charge higher premiums, unless the company can demonstrate statistically higher risks as a direct result of a specific disability.

The Association of British Insurers (ABI), is a body which represents the interests of British Insurance companies and intermediaries. They produce medical insurance guidelines which are designed to uphold the law and protect individuals as well and the health insurance companies. Their statement on cover for disabled individuals is:

'You will not be refused cover because you have a disability. As with other pre-existing conditions, your insurer might not include cover for treatment that is needed because of your disability. However, it must be reasonable and fair for them to do this.'

In other words, health insurance companies are not allowed to deny you health insurance if you are disabled or charge you more without statistical data that would prove you are a greater insurance liability. Doing so would be considered discriminatory and would therefore be illegal. It is also important to note that we are referring here to mental health disability as well as physical disability.

What is important for disabled people is that you make clear all problems and symptoms related to your disability both current and past. This enables your insurer to assess your liability status and enables any valid future claims to go through smoothly and without dispute.


If you feel that you have been treated unfairly by a medical health insurance company there is a very clear path of complaint for you to follow. Health Insurance UK has provided complaint guidelines that you can follow.


Medical Cover if you Become Disabled

Medical health insurance is designed to provide short term cover for acute illnesses or conditions. It does not cover long term disability.

However if you have a short term disability you will be covered. Each policy is very specific in its terms and conditions. Some policies have a cost limit. Under the terms of your policy, once you have reached your policy limit you will no longer be covered. Other policies have a time limit, for example for physiotherapy treatments, Norwich Union offer unlimited in-patient physiotherapy but only 10 out-patient treatments per year.

It is important to add here that cover for psychiatric conditions is not standard on all policies and care should be taken to seek out a suitable policy if this is something that you want. This highlights the importance of really doing your homework when you take out private health insurance. Check any policy documents carefully before you make a purchase to see what your levels of cover would be.

Men & Women to Pay Equally for Health Insurance

A new directive set by the European Commission will mean that insurers will not be able to discriminate between people on grounds of their sex. That means that medical insurance policies for men and women will cost the same and any differentiations will be based more around lifestyle than gender.

As reported in Health Insurance News UK women do currently pay more for their medical health insurance with some companies. However statistically it is not a lot more when you take into account the fact between the ages of 36-40 women are 80% more likely to make claims and have treatment than men. The private medical insurance companies are spreading the risk and this is benefitting women.

In other areas, for example car insurance, where men pay much higher premiums, there would be great changes and women could see a significant increase in their monthly payments.

Currently sex differentiated policies are allowed if they are based on actual differences in risk rather than prejudice.

The private medical insurance industry is not very happy about the new proposals. Mary Francis, director general of The Association of British Insurers said that, 'The insurance industry is opposed to unfair discrimination of any kind, but in this case it is only right that we point out the likely results. The commission has started out with the best of intentions, but this piece of legislation will do no one any good, '

The CEA, the European insurance and reinsurance federation said that, 'if the proposed restrictions are placed on insurance it will have the opposite effect to that which the Commission intends. These legal restrictions on risk-equivalent calculations must be avoided to ensure that insurance pricing is adequate, reasonable and fair.'

The directive, led by social affairs commissioner, Anna Diamtopoulou, will go to the European Parliament before it can be passed as law and is unlikely to come into force until 2013. The directive is backed by the UK Equal Opportunities Commission and the UK government who are committed to eradicating discrimination. The policy, if passed, will also cover age, disability and race discrimination as well as sex.

Health Tourism

Medical health tourism is on the increase. It provides a large income source for host countries and a cheaper way of having surgical procedures for the consumer. With Freedom Healthnet Ltd medical insurance you can combine the security of knowing you have medical health insurance with the freedom to choose where you have it.

Freedom Healthnet provides you with cash straight into your bank account should you become ill. Its up to you how you spend the money. You can stay with the NHS and use the money for other things, pay for treatment in the UK or use the money to pay for overseas healthcare and keep the change. The choice is yours.

Having medical procedures abroad has become very popular in the last few years. The reasons for this are:

Its cheaper
The cost of treatment in Asia, South America or Africa can be up to a tenth cheaper than in the UK

Its faster
Although waiting lists in UK private health companies are very short this is not the case in America where you can be waiting almost a year for a hip replacement for example. In the UK, in most instances, it would be much quicker to have private medical treatment than to wait on an NHS waiting list.

You can combine surgery with a holiday
Lots of people combine having surgery abroad with a luxurious family holiday while they recuperate.

The most important issue is to make sure that you receive the best and safest private medical care wherever you choose to be treated. The are various organisations which investigate and accredit hospitals to make sure they conform to international standards of care and if you follow their advice you should receive the best medical treatment available.

The Trent Accreditation Scheme (TAS)
The Society for International Healthcare Accreditation (SOFIHA)
Joint Commission International (JCI)

With more and more countries capitalising on the money that health tourism brings into their economy we should see more and more facilities which conform to international standards. Freedom Healthnet Ltd medical insurance offers great flexibility and if you choose an international destination to have treatment you will have plenty of cash left over to enjoy your stay and recuperate.

Non-disclosure Guidelines Now Compulsory

Last year The Association of British Insurers (ABI) and the Financial Ombudsman Service (FOS) produced a paper which tackled the question of non-disclosure in an attempt to be fairer to people with health insurance cover. Last week this paper was re-launched as a code of conduct can only be good news for people with medical insurance policies.

Non-disclosure refers to the keeping of relevant information from a private medical insurance company. This can be non-intentional or intentional. Both forms of non-disclosure, if discovered, can render your health insurance policy non and void.

The 400 medical health insurance companies of the ABI are now bound by the non-disclosure code. Kelly Ostler-Coyle, an ABI spokeswoman said that, “One year on, and the referral figures to the FOS have dramatically dropped since the guidance has been in place. Before it was seen as optional, which it isn’t, it never has been and all our members are using what is now the code.”

The health insurance industry suffered many complaints from unhappy policy holders who felt they had been dealt with unfairly. This also created very bad press in the media and an unease among the general public as the ethics held by health insurance companies. Complaints have been going down since the paper came into effect last year, from 85 complaints in the first quarter to 32 in the last. It remains to be seen whether they go down further now that the its rules are compulsory.

Another piece of good news for consumers is that insurance companies with the most complaints will be exposed. An independent report recommended that the Financial Ombudsman Service 'name and shame' companies with the most complaints.

The Association of British Insurers represents the interests health insurance companies and brokers and the Financial Ombudsman Service is an independent body which protects the rights of consumers. It is their role to monitor the financial service industry to make sure they are treating customers fairly. The FOS provide a helpline (0845 080 1800) and advice on complaints procedures should you feel you have been treated unfairly.

Profit Share Private Medical Insurance

If you are a small to medium sized business keeping an eye on every penny is important but at the same time health insurance is an extrememely valuable resource for your employees and for your own productivity. However, if you get to the end of the year and find that the cost of what you have paid out in premiums is more than your employees have used it is understandable that you may be frustrated and feel that you have wasted your money.

PruHealth offers profit shares for small businesses by giving you 25% of the difference between the claims and the premiums you have paid. This is offset against the next year's premiums. In 2008 PruHealth's small group clients where able to renew their policies for only a 2% increase on the previous year. This may not sound like a good deal but actually amounts to a saving of 6% as premiums had increased from 2007 - 2008 in line with the rest of the industry.

This profit share offer means that if your claims are low you do not feel that you are wasting your money and what you pay is a fairer reflection of the claims made. It also means that you could save the time and inconvenience of shopping around for a better deal. However, the medical health insurance market is very competitive and therefore it is always worth taking a look at the best medical insurance policy for you and your employees. Using a reputable broker will save you time and provide you with the best overall cover.

People Happier with NHS

According to the latest British Social Attitudes report people have never been happier with the NHS. So what does this mean for the medical health insurance business? Does it mean that the consumer is less likely to take out private health insurance? And are there options which combine NHS care with private health care?

The report, conducted by the National Centre for Social Research, found that people are the happiest they have been with the NHS since 1984. When asked the question: And how satisfied or dissatisfied are you with the NHS as regards being in hospital as an in-patient? 46% answered that they were either 'very' satisfied or 'quite' satisfied. The similar levels of satisfaction applied to people's experience of the care of children and young people in the NHS.

However, even though there is a higher level of satisfaction this still means that there is a high proportion of people who are not happy. 18% of people surveyed said they were either 'quite' dissatisfied or 'very' dissatisfied with the NHS. It is interesting to note that this figure is close to the 12% of Britons who have private medical insurance.

The ABI has reported that they are not seeing a decrease in the number of people taking out medical insurance but that they are seeing people reducing the level of their cover. This appears to be related to the current economic situation rather than any other factor. Additionally recent survey's by BUPA show that the main reason people turn to the private health insurance sector is that they have concerns over NHS levels of cleanliness and the risk this poses of catching superbugs.

There are a couple of private health cover options available which capitalise on the improvements in the NHS:

The Six Week Option
This is where you only use your health insurance policy if you have to wait more than six weeks in the NHS. One of the reasons that people are happier with the NHS is that waiting lists have been cut down since 2004. The target set by the NHS is 18 weeks. However this is still a long time to wait if you are unwell and distressed. There are several companies that offer you a reduced premium if you are prepared to wait six weeks to see if you can be treated by the NHS in that time. Standard Life Healthcare for example, offers this in both of their EspritHealtcare plans and provide a 10% reduction in your premium if you take up this option.

Freedom Healthnet Ltd
Freedom offers an excellent alternative to traditional health insurance policies. They give you, in many cases, very cheap health insurance cover and in return you get paid in cash should you fall ill. This leaves you with a great amount of freedom. If you are perfectly happy to be treated on the NHS then you are free to use the cash for anything else that you choose.

Reduce Workplace Absence

Workplace absence is a big problem in the UK. It costs the economy £12bn pounds every year. According to the 2007 survey from the Institute for Personnel and Development (CIPD) industries are implementing well-being schemes as a response to the rising rate of employee absenteeism. The solution needs to be preventative and curative. Encouraging well-being and providing health insurance for employees should they fall ill provides both companies and their staff with all round greater security.

CIPD questioned over 800 organisations and identified that different employment sectors have specific health problems associated with them.

Solicitors
-stress (a quarter of solicitors wanted to leave the industry due to stress and poor work/life balance), repetitive strain injury

Aggregate
-highest injury rate and mortality of any industry
-falls from heights, manual handling, transport, musculoskeletal injury, trips and slips

Engineering
-exposure to chemicals and fumes, hearing, hand/arm vibrations, electric shocks, explosions, being confined in small spaces

Health
Musculoskeletal injuries, trips and slips, violence, stress

Measures to improve wellbeing are one way in which this problem can be tackled and there are many options in this area. On the 9th September James Purnell, Secretary of State for Work and Pensions outlined the importance of workplaces rewarding staff not just with money and time off and job security but also with good prospects and development schemes. He also highlighted the significance of good relationships as a factor in wellbeing in the workplace with emphasis being placed on 'strong, trusting and respectful relationships.'

Another option is to provide employees with medical health insurance which has many benefits and in particular it makes employees feel looked after and valued and enables sick employees to return to work faster. Additionally, some health cover schemes include 24 hour counselling services which may also work as a preventative health measure.

It is in the best interests of the country, employers and employees to increase wellbeing and deal with physical and mental ill health as quickly as possible, particularly in the light of the current economic climate.

Regulation for Alternative Medicine

Many of the alternative therapies available have been used all over the world for thousands of years but in the Western World conventional medicine is prized above everything else. In recent years alternative medicine has become more mainstream and many medical practitioners are incorporating some treatments into their practises. Medical insurance companies also offer some treatments as part of their health cover.

There has been great criticism that alternative medicine is not regulated in the same way as conventional medicine is. This went part way to being rectified on the 19th January with the launch of the Complementary and Natural Healthcare Council (CNHC). The aim of the CNHC is to enhance public protection in complementary and natural healthcare. According to its website:

'The CNHC has been developed with the help of complementary healthcare practitioners and with support from the Prince's Foundation for Integrated Health. The Department of Health has consistently supported the CNHC throughout its start-up period and is committed to establishing the CNHC as the national voluntary regulator in the complementary health care field.'

It is important to note that membership of the CNHC is voluntary so there will still be many thousands of practitioners who can still work without being involved in any regulatory body.

The medical health insurance industry takes a fairly traditional view of complementary health practices and this is reflected in their policies. All four of the top UK medical health insurance companies offer some forms of complementary health care in some of their policies, usually at the higher end of the premium scales. The treatments usually offered are: Acupuncture, physio therapy, homeopathy, chiropractic and osteopathy. These treatments are well established and highly regulated already and, apart from physio therapy, are not generally available on the NHS.

So what happens if you are an advocate of the less well known and less regulated forms of treatment and you want the security of knowing you will be able to afford treatment should you need it?

Freedom Healthnet Ltd offers you a very practical solution. Its private health insurance policy gives you cash should you become ill. It is up to you how you spend it. You could choose to be treated on the NHS and use the cash for curative or preventative alternative therapies. If alternative treatments are important to you then this could very well be the best health insurance policy for you.

Too Old For Health Insurance?

It stands to reason that as we get older more things can go wrong with our health but how does this affect our health insurance premiums and is there an age where we can no longer get health cover? This article compares age related price increases in the medical insurance market.

All the information that follows was taken from the gocompare.com website apart from the figures from Freedom Healthnet Ltd which were taken from their own private medical insurance site. The health insurers that we looked at were: BUPA, Freedom Healthnet, Standard Life and Norwich Union Healthcare. We looked at comprehensive medical health insurance cover for non-smoking males between the ages of 20 and 80 living in the south of England. The information was collected on 23rd January 2009 and refers to the cost of monthly health cover premiums.

We found that the cost of health insurance quotes goes up with every decade. The average percentage increase between each decade also increased as the age range got higher. Two insurance companies, Freedom Healthnet and Standard Life did not give quotations for 80 year olds. The biggest price increase came from Standard Life. The difference between the cost of health cover for a 60 year old compared to a 70 year old was 68%

Average Percentage Increases Between:
20-30 year olds: 22%
30-40 year olds: 27%
40-50 year olds: 30%
50-60 year olds: 44%
60-70 year olds: 55%
70-80 year olds: 56%

As you can see from the data above the increases in monthly premiums for each decade get bigger and bigger. To give you a flavour for the price comparisons we have included some specific results below.

FREEDOM HEALTHNET
20 year old: £25.83
30 year old: £30.98
40 year old: £42.38
50 year old: £58.63
60 year old: £87.33
70 year old: no quote
80 year old: no quote

STANDARD LIFE
20 year old: £53.03
30 year old: £59.09
40 year old: £73.86
50 year old: £97.61
60 year old: £137.93
70 year old: £233.00
80 year old: no quote

What do these figures mean for the older people in our society? They are likely to suffer poorer health but have to pay more for their private health insurance. The phrase 'prevention is better than cure' comes to mind and medical health practitioners are encouraging us to pay attention to the fact that some of the health conditions associated with old age can be allayed with more healthy life-style choices.

Women Pay More For Health Insurance

Statistics show that our gender influences our health but does it influence what we pay for our private medical insurance?

According to the Association of British Medical Insurers (ABI) gender can affect the cost of medical insurance cover. From the 6th April 2008 there was a change to the Sex Discrimination Regulations which now specify under which conditions insurance companies are allowed to differentiate in pricing on the basis of biological sex. Differences based on sex must be based on 'relevant and accurate statistical data.' So what is this data and how does it affect pricing?

In June 2008 the ABI published a data bulletin outlining the number of claims made by women in comparison to men. Data was drawn from four private medical insurance companies: AXA PPP Healthcare, CIGNA Healthcare, Norwich Union Healthcare, PruHealth. The data shows that from the ages of 26 and 65 women the average cost of a claim on a health insurance policy is higher than a man's. In the 36-40 year old category women peak at a claim cost that is a staggering 80% higher then men's.

The ABI are keen to point out that the data they have published are averages and there are many factors which will affect people's premiums, including their medical records, lifestyle, location, social group, age, postcode, usage and no-claims discount.

So what is the impact of this on the cost of women's health insurance? Do women in the higher claiming category have to pay 80% more to get the same health cover as men?

An analysis of recent premiums shows that women do pay more in this age group but only with some health insurance companies. BUPA, Patient Choice, Standard Life, Norwich Union and BCWA do not give online quotes that differentiate on gender but Pru Health and AXA PPP Healthcare do. Here are a few examples taken from insurance comparison site gocompare.com. They are for mid-range policies for 41 year old people living in the south. These figures were collected on 23rd January 2009.

Pru Health
Men: £52.91
Women: £56.80

AXA PPP Healthcare
Men: £50.05
Women: £50.56

BUPA
Men & Women: £36.50

Patient Choice
Men & Women: £25.56

We cannot say from these figures that women are unhealthier than men just because their claims are more costly but what we can say is that on average if you are a woman between the ages of 26 and 65 it will pay you to shop around when looking for medical health insurance.

Free BUPA Health Check

As part of their Wellness programme BUPA have launched a free online health check not just for its own members but for members of the general public. BUPA are the UK's largest provider of medical health insurance for both corporate and individuals.

Dr Peter Mace, deputy medical director of Bupa Wellness, said, 'We know people are worried about the credit crunch yet they still want to take care of their health.

'We also know that they are increasingly using the internet for health information and advice. Bupa's free online healthcheck is backed by qualified doctors and based on sound clinical evidence.'

The health check asks you questions about your health and lifestyle to asses your risks. It looks at lifestyle risks which relate to your diet, fitness and stress levels and your medical risk of serious conditions such as heart disease and diabetes . The report tells you about the main risks that you are facing and how this affects your life expectancy. The site will also let you know what you can do to improve your situation with guidance on what is most important to tackle first. The whole thing takes about 15 minutes.

BUPA offer a wide range of hands-on health screens:

-BUPA Advanced Health for £728 (including a mammography for ladies over 40).
-BUPA Complete Health for £578 (including a mammography for ladies over 40)
-BUPA Mature Health £549 for the over 65's
-BUPA Female Health for £299

The benefits of health checks are mainly preventative but according to BUPA, 'For one in three people who come to us, we discover health issues they didn't know about. At an early stage, even serious conditions such as heart disease and cancer can be successfully treated and related problems are less likely to develop later on'.

BUPA and Facebook help you Stop Smoking

BUPA and Facebook seem like an unlikely combination but a new Facebook application called QuitClock has developed by BUPA to help people stop smoking. It is interesting that the largest medical insurance company in the Uk is harnessing the huge power of this social networking site.

QuitClock is a little tool which lets you know how much time has elapsed since you gave up smoking. It also shows you how much money you have saved by giving up. This is an important point as giving up the cigarettes will also give you cheap health insurance as premiums are higher for smokers. It is well recognised in coaching circles that change that is measurable is easier to sustain. BUPA's QuitClock is helpful in this way but also enables family and friends to give online support and encouragement by leaving messages. A good support network is also important in sustaining change.

Senior health editor at BUPA Alastair McQueen said "QuitClock is the first Facebook application BUPA has released. It's a new way to engage people who use social networking sites and who want to stop smoking."

Personally I gave up smoking in December and QuitClock has let me know that I have saved just over £203. This is a huge amount and more than I would have paid for a medical health insurance policy. The tool also allows you to let all your Facebook friends how well you are still doing.

It makes sense that BUPA has developed this tool for Facebook. Most Facebook users are under 40 and so are most smokers. According to ASH (Action on Smoking and Health) The highest proportion of smokers is found amongst 20 to 24 year olds (33% of men and 29% of women smoke) and two thirds of smokers start before their 18th birthday.

It will be interesting to see if BUPA release any more applications for Facebook.

Health Insurance Companies Share Information

At the moment private medical insurance companies and brokers do not share information between one another when it comes to corporate health insurance but there are moves to change this.

In other areas of insurance it is commonplace for companies to share information about client claims. This means that information and quotes can be more accurate for the consumer. From the insurance companies point of view it means they can assess accurate risk and give a potential customer a realistic cost for their insurance but it also means revealing areas where risk is low but premiums have remained high.

On the 21st January the first Transparency of Claims discussion will take place. This has been initiated by the Association of Medical Insurance Intermediaries (AMII) . The AMII's chairperson Mike Izzard, will be representing specialist healthcare intermediaries and IFAs.
The panel will comprise of members of the British Insurers Association (BIBA) and private medical insurers, including Groupma, Cigna and Standard Life. BUPA and Axa PPP will be attending but not in a participatory capacity.

Izzard said: “We are delighted to have such an encouraging response from the industry to this discussion of such an important industry topic. The only way to improve the flow of information is for all the relevant parties to get together, including the underwriting community and we hope this panel will go a considerable way in achieving that.

“We have all agreed to sit together and explore viable and practical solutions. The results of the discussion and ongoing meets will be announced in due course.”

More openness would appear be a good thing for consumers as it means that brokers will be able to advise their clients in a more relevant and meaningful way. Many health insurers, however disagree both on commercial grounds and in terms of their customers best interests. Laurent Pachat-couttilloux, commercial director of Standard Life Healthcare believes that sharing information raises a serious confidentiality issues . According to the Health Insurance Magazine, Anne Greenwood, director of Business Markets, BUPA UK Health Insurance says,

'Bupa’s pricing policy is influenced by our customer’s loss ratio value, not just their claims history, therefore disclosing our customer’s detailed claims information would not be appropriate.'

It will be interesting to see the outcome of the discussions later this month.

Mental Health Insurance For Business

Many businesses loose hundreds of hours of productive time each year because their staff are off due to stress or other mental health issues, in particular depression. It is a serious problem in the workforce. Not only does it create a difficult ambiance in the workplace but it also seriously effects productivity too, in particular if you have a small business and one of your key workers is off with a mental health problem. Stress is a growing cause of absence. According to the Health and Safety Executive, work-related stress accounts for over one third of all new incidences of ill health. Each case of work-related stress, depression or anxiety related ill health leads to an average of 30.2 working days lost. But what cover for mental health do business medical insurance companies provide?

PruHealth (winners of the Best Group PMI provider at the 2008 Health Insurance Awards) provide 45 days of outpatient psychiatric care in any one year and inpatient care. Their Vitality Scheme also provides incentives to improve your well being. They encourage you to exercise by offering reduced membership at health clubs and offer you half price accommodation at Champney's. Overall attention to well being and stress reduction is known to have a positive impact on mental health so this could be a valuable scheme for companies who have high work-related stress issues.

BUPA Healthcare who has a very flexible mix and match health care policy advises that you 'consider retaining psychiatric cover if, for example, stress levels in your business are high.'

Freedom work by paying you the cash to seek the treatment that you need. They cover up to a maximum of £10,000 per policy year for in-patient treatment and £1,500 per year on outpatient treatment.

Norwich union provide a 24 hour Stress Counselling Helpline for business health insurance clients which shows their understanding of the impact of stress on our well being. They also provide psychiatric treatment up to £1,000 within one year.

As the recession bites in 2009 and companies and employees are required to work harder stress will grow in the workplace and the question might be not can you afford private health care to protect your employees from the effects of mental health issues but can you afford not to?