Economy & Budget Medical Insurance Plans : pitfalls

Economy Plans

The spiraling cost of Private Medicine has seen the proliferation of "Economy" plans from insurers in order to keep premium costs at affordable levels. Before entering into a contract with such restricted benefits, you must make sure that you understand the pitfalls that could befall you at the point of claim.

It is important that you take into account the limitations associated with Economy Plans. Some examples of these are:

- 'In-Patient Only' plans
- 'Six-Week Wait' plans
- Restrictive Hospital lists
- Excesses

In-Patient Only Plans
As the name suggests, these plans only cover conditions where a person is treated as an 'in-patient' (where you stay overnight in a hospital bed). Many also cover day care procedures, but virtually all exclude 'outpatient' costs. Remember that more than 80% of all claims are for outpatient treatment. Outpatient costs for X-rays, scans, blood tests, physiotherapy, consultations, and alternative medical treatment can be expensive.

Six-Week Wait Plans
These policies are designed to cover treatment where the NHS waiting list is in excess of six weeks long. For people happy to use the NHS facilities where there is only a short wait, this type of contract may be suitable. Statistics show that most admissions to hospital are for emergencies. If, for example, you were injured and rushed into the NHS - following vital treatment, you would not have the option to transfer to the private sector. In addition, many of these plans do not cover Outpatient treatment unless it is linked to a period of Inpatient stay.

Hospital Networks - Restrictive Hospital Lists
By striking up agreements with various hospitals, insurers have been able to negotiate cheaper rates for treatment. Clients willing to accept a reduced hospital list have the benefits of reduced premiums. However, you should make sure your local and specialist hospitals are on the list. You should also note that if a Medical Specialist you wish to use does not operate in the hospitals on the list, you might be required to use another Medical Specialist.

Excesses
Excess Agreements are common practice across the entire insurance industry. By opting to pay say, the first £100 of a claim you would attract a premium reduction. Be sure to shop around - or better still, let Premier Healthcare Management do it for you! This can often result in the provision of a full cover policy for a similar price to that of a restricted economy plan. Do talk to us first; we're here to take the strain out of finding the appropriate plan for you. If you are in any way unsure about the limitations of Economy Plans, talk to one of our specialist consultants.

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