Newspaper Bosses Use Private Health Insurance

An interesting article published in the New Statesman on Thursday asked top UK news bosses if they used private medical insurance or the NHS. Out of the ten people only one, John Ryley from Sky News, said that they did not use any private health insurance. Other than that all those asked said that they used a combination of NHS and health insurance. Many mentioned that they were part of their company medical cover scheme.

John Witherow: Sunday Times
Uses both private health care and the NHS

Will Lewis: Daily Telegraph
Uses private health care, 'when I have to wait too long to wait for an operation.'

Gareth Morgan: Daily Star
Uses both the NHS and private health care

John Mullin: Independent on Sunday
Says that he does, 'have private health care. But I have only used it for physio when my unhealthy body gives out.'

John Mulholland: Observer
Says that he has private health insurance through work

Geordie Geig: Evening Standard
Uses the NHS but also has BUPA

Peter Wright: Mail on Sunday
Uses the NHS mainly but occassionally uses private health care

Jason Cowley: The New Statesman
Mr Cowley has been a member of a health cover scheme at his last two jobs with the Observer and Granta

Paul Dacre: Daily Mail
Said, I have used and use both the NHS and – as a member of the company’s health insurance scheme – private medicine. I am inordinately grateful to both sectors.'

Medical Insurance May Not Cover Chronic Fatigue

Normally the medical profession agrees on the diagnosis and treatment of most illnesses. However what happens if you develop a condition where there is disagreement. How does this affect your health insurance claim?

ME (Myalgic encephalomyelitis and myalgic encephalopathy) or alternatively known as Chronic Fatigue Syndrome is an example of a condition about which there is still some controversy. The symptoms of ME are wide ranging but mainly they are: extreme exhaustion which is not alleviated by extra sleep, muscular aches and pains, poor immune response, poor cognitive function and various other symptoms. However the NICE guidelines recommend Cognitive Behaviour Therapy as a treatment for ME which suggests that it is a psychosocial condition rather than a biomedical one.

The belief is that ME has depression as a characteristic and that it is therefore a form of depression but opponents of this view say that there are various physiological differences between people who have ME and people who are depressed although they agree that patients with ME will often become depressed due to their illness.

Because of the NICE guidelines private health insurance companies are within their rights to refuse cover if an applicant's policy does not include psychiatric cover.

ME suffers disagree that the condition is psychiatric or psychological and are campaigning to have their case heard. We can point out that ME was formally classified by the World Health Organisation as a neurological disease in 1969. On the 12th February 2009 two suffers, Douglas Fraser and Kevin Short launched a challenge of the NICE guidelines and appeared in court asking for a judicial review.

Beagent, the solicitor acting for Fraser and Short said: "There is a huge strength of feeling about the way insurance companies deal with these suffers. The main grievance is the way they handle claims. Often insurers send around medical experts who reach the conclusion that it is a psychological disorder."

Sue Waddle, representative of ME Research UK told BUPA that, 'Doctors get quite frightened by illnesses that they don't understand

'If research increases understanding of the condition then doctors will be more confident in dealing with patients, so hopefully we can move away from the psychological aspects and concentrate on the biological.'

One of the suspected causes of ME is an autoimmune reaction to high levels of stress or a viral infection and it is said to affect 250,000 in the UK. In the 80's it was dubbed 'Yuppie Flu.' With more and more people reporting higher levels of stress ME may be on the increase. But with this level of controversy it is important that insurance companies are clear on their policies. Beagent points out that the committee that drew up the NICE guidelines on chronic fatigue included two private medical insurance representatives.

A spokeswoman from the Association of British Medical Insurers (ABI) said that 'When insurers assess claims they have to be guided by the medical profession. However, on this issue the medical profession is divided about both the causes and prognosis of ME, therefore clarification of the medical guidelines would be helpful.' If there is a medical opinion which concurs that it is a psychological condition then private healthcare companies can refuse cover.

Action For ME is a UK charity available to offer information and support for ME sufferers.

Pay Upfront or Pay Monthly?

There are two ways of paying for private medical insurance: either by purchasing a private health care plan or by just paying for it as and when you need it. But which is best?

For some people paying for treatment as and when the need arises is not a problem. This applies to people who either have a very high income or a good degree of capital. This is not the majority of people. Statistics show that most people who use private health insurance are either part of a corporate scheme or are individuals and families who pay monthly premiums.

For most people then, paying regular medical insurance premiums is a way to cover themselves should they ever become ill. However there are disadvantages to this:

-You may never become ill and therefore will have paid out on premiums without ever having used the private health cover
-You may already have illnesses which will not be covered by your medical insurance provider
-There are many exclusions to health insurance policies, particularly if you are only paying for basic coer

An alternative is to save up and put money to one side to pay for treatment should you need it. However, recent evidence from the Association of British insurers reports that British people are loosing confidence in the benefits of saving. The research conducted by YouGov showed that Nearly three-quarters (73%) of consumers felt that the benefits of saving had fallen over the last year, compared to just over half (53%) in the third quarter.

One of the reasons people may not consider saving for ill health is that they do not consider what the costs of possible treatments might be. Below is a selection of operation costs taken from the website of Spire Murrayfield in Edinburgh:

Hip Replacement: £8,200 - £10,300
Cataract Removal £1,900 - £3,250
Haemorrhoids £1,575 - £3,075
Hernia £1,650 - £3,800
Breast Lump Removal £1,530 - £2,500
Carpal Tunnel Release £1,000 - £2,100

An advantage of upfront cash payments is being able to negotiate on price with hospitals and private clinics, something that is not possible if you have private medical insurance.

There is a company which gives you cash should you fall ill and allows you to choose where and how you spend it and again here you also have the option to barter on your treatment costs. Freedom Healthnet Ltd gives traditional cover but delivers cash straight into your bank account should you fall ill. If you compare health insurance premiums on the market you will find that they provide very cheap medical insurance across the board.

A compromise between saving and paying a high cost for medical insurance premiums could be to take out an inexpensive policy where your excess is very high. All you need to do here is make sure that you have the excess available. This type of policy is available from XS Health offers a comprehensive health insurance policy and there is a choice £1,500, £3,000 or £5,000 excess to pay. Premiums are as low as £55.83 a year and once your treatment costs get higher than your excess you have unlimited cover for a full year before you have to pay any more excess.

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.

4 Ways to Cut Medical Insurance Costs

We are all looking to cut out outgoings at the moment as the cost of living has increased. At the same time it is good to think that we can still have the same standard of living and security that we have always enjoyed. When it comes to health cover there are five main areas where we can save money but still enjoy the best medical insurance.

1) The six week option
The private health market has schemes available that will pay for your treatment if you have to wait more than six weeks on the NHS. 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.

2) Excess
Most companies offer you reduced premiums if you pay a certain amount for each claim and the premiums will go down the greater the excess. Excesses can start from £100 and go up to £5,000. XS Health offers a comprehensive health insurance policy and there is a choice £1,500, £3,000 or £5,000 excess to pay. Premiums are as low as £55.83 a year and once your treatment costs get higher than your excess you have unlimited cover for a full year before you have to pay any more excess. This policy allows you to budget to your excess with the security that you will never need to pay more than this.

3) Specific policies
Policies that are very specific are often cheaper than general ones that are designed to cover a wide range of people and conditions. Examples of this are Retirement, students, Heart and Cancer, policies just for children. AXA PPP Healthcare has a policy for which is aimed at 65 and overs which just covers you for accidents and falls. If you fall into one of the categories that these specific policies cover then you may be able to obtain cheaper health insurance.

4) Choose the cheapest insurance
Recent price comparisons show that Freedom Healthnet are providing consistently cheap health insurance for a whole range of people both in the business and individual markets. Other than providing you with good value for money Freedom also give you the cash that you need for your treatments. This means that you can negotiate cheaper prices with private hospitals and keep any money that you have left over to spend as you please. So you could end up with money in your pocket.

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?

Private Health Care to Pay For Care of Elderly?

As the aging population is growing there are concerns about how we will be able to pay for their care in future years. One idea that the government is exploring is the possibility of private medical insurance schemes set up to help fund the cost of old age.

The system that we have at present seems flawed and unfair. Currently pensioners who are homeowners have to sell their properties in order to pay for their care even though those who do not have savings or homes to sell still get their care funded by the government. There is also a variation up and down the country on how much free help you can get. According to the Telegraph, 'The Government admits urgent reform is also needed to fill a looming £6billion black hole in funding as people live longer, care costs rise and dementia rates increase.'

It is generally agreed that the state are not able to pay for the care of all its elderly. Since May the government have had extensive talks with the health insurance companies who feel they have a role to play. The Care Services Minister, Phil Hope, said: "We know private insurance plays a substantial role in other countries' systems, including France. However we have made no decisions yet about the future."

The idea is that every adult would be encouraged to take out private medical insurance to cover the cost of care during old age. Premiums would be paid monthly and the cover would pay for care in a nursing home should that be necessary.

Those who vehemently disagree with the private medical health care system argue that we need to increase taxation in order to pay for comprehensive care. A critic of the new plans, health spokesperson for the Liberal Democrats, Norman Lamb, said he didn't think that the

'private insurance model is going to achieve the transformation in care that we need. Our view is that its got to be a shared responsibility between the state and the individual.'

He also pointed out that the sense of injustice currently felt by those who have had to sell their homes or use any savings over £22,500 to pay for care would continue. Why should people who had budgeted to pay for their premiums accept that their less well off peers would receive free care?

We will have to wait to see how the government propose to tackle the growing older population, their future healthcare concerns and the growing tide of unrest.

Health Insurance For My Children

Sometimes people are unhappy about taking out private medical insurance. There may be many reasons for this: they may not be able to afford it or feel it is too great an expense, they may be happy to wait on NHS lists or they may even object for political reasons. However people sometimes find that when their children's health is at risk they feel differently and many people who are covered by their company's private health care policy may only use it for the first time when their children falls ill.

If you do not have private medical insurance provided by your workplace then a specialised health insurance policy designed to cover just your children may be the thing to go for .

AXA PPP provide cover for children for £9.99 a month with each additional child costing less. In-patient treatments are covered if your child cannot be treated within six weeks on the NHS and the same applies for any surgical out-patient treatment. Other outpatient treatments are also covered. What is not covered is psychiatric treatment both as an in-patient or an out-patient. There are additional benefits with the plan as one parent's accomodation is covered to stay with the poorly child if they are under 11. On top of this if you need your child to be treated from home you will be covered for 'the cost of a nurse to administer intravenous chemotherapy for the treatment of cancer, or intravenous antibiotics at home.'

AXA PPP healthcare head of product management, Geoff Salter,, said: "First Healthcare is for people who may not be able to afford private health care cover for their whole family but who want to make sure their children are covered. It will give parents peace of mind knowing that their children can be seen promptly as a private patient."

This policy is not designed for speedy treatment but is designed to cover if NHS waiting lists mean that your child has to wait too long for treatment.

Technology and the Private Health Care Industry

Gone are the days where the only way to buy health cover was to sit with your broker or health cover insurance clerk over a cup of tea and a long paper form. Lots of business today is conducted on-line and over the phone with technology playing a huge part in the smooth-running of the health insurance business.

This week AFA Insurance (the umbrella company for AFA Medical Insurance) announced its investment in ReadSoft's Classify and Index products brought in in order to automate the handling of three additional insurance products. Maria Welin-Persson from AFA Insurance says,

The objective of this investment is to ensure the quality of our information and to streamline our processes. These in turn lead to improvements in efficiency throughout the organization. We want to use our resources in the most optimal way and, with the aid of ReadSoft's solutions, free up administrators' valuable time so that they instead can focus on helping our customers

Teleunderwriting is another technological advancement which is known to help counteract non-disclosure and therefore provide a better service for health insurance customers. Teleunderwriting is the process in which trained personnel interview clients over the phone to gather risk-related information.

Lovers of technology see developments as a great bonus to the smooth running and efficiency of health cover businesses but those who distrust it warn that all business is about people and that its important not to loose sight of this particularly in the health insurance sector as they are dealing with real people with very real concerns and problems.

Private Medical Records in Jeopardy

There are proposals afoot which would allow electronic medical records to be accessed by researchers and private companies. The British Medical Association are set to fight this. In contrast, at the present moment rules concerning confidentiality are very strict in the medical health insurance business. Currently written patient consent must be obtained for GP's to be able to release patient information to a private health care company.

A huge database of all patient visits to GP's and hospitals would be available. This would make research much easier. However there are concerns over the possible misuse of the information. Drug companies could target sales at people who are unwell and vulnerable. These plans cannot go through without further debate in particular with the National Governance Board for Health and Care a body set up to protect NHS data.

The Governments own health information watchdog, Mr Harry Clayton, also expressed concern over these proposals. Mr Clayton said,

"The public do value medical research but they rightly want to be asked
first. Confidentiality are the building blocks of trust in the NHS, and it
cannot be in any one's interests, including researchers, to undermine that
trust."

Confidentiality issues aside for a moment, if these lists ever become available to the health insurance industry could it help with transparency and eradicate non-disclosure? On the other hand isn't it the GP's knowledge of their patient's medical history and their social and emotional well being what makes them the perfect middleman and authority between the health insurance provider and the patient?