Frequently Asked Questions
- What is Private Medical Insurance?
- What am I covered for? What does cover not include?
- What will affect my premiums?
- Will I need to provide details of my health?
- What is Moratorium Underwriting?
- What is Full Medical Underwriting?
- Will my cover be affected if I am disabled?
- How do I make a claim?
- Which Companies do Premier Healthcare Management recommend?
- I am in good health – what are the chances of falling ill?
- Can I depend on the NHS?
- What are the benefits of Private Medical Insurance Schemes?
- How much do operations cost ?
- How can a Long-Term Care Plan help me?
- How is the Private Medical Insurance Industry regulated?
What is Private Medical Insurance?
Private Medical Insurance is designed to cover the costs of private medical treatment for short-term illnesses or injuries – commonly known as acute conditions. Most people buy this type of insurance to gain the reassurance of knowing that treatment is available promptly, should they become ill or injured. As a private patient you can usually choose where and when your treatment is to take place, the specialist who treats you and the hospital. You will usually have a private room with en-suite facilities, complete with TV, telephone and the freedom to entertain your visitors at all reasonable times.
What am I covered for? What does cover not include?
Private Medical Insurance is designed to cover treatment for short-term illness or injuries. Some illnesses and treatments are not usually covered and these are common to most schemes. It is also important to remember that Private Medical Insurance is not designed to replace all the services offered by the NHS. Some, such as accident and emergency treatment, are beyond the scope of most private hospitals. The level of cover provided depends on your choice of insurance company and the type of plan selected.
Listed below are some very general guidelines. However it is important that you consult your Private Medical Insurance specialist…
Usually included treatment in the UK:
- Hospital costs including:
- Nursing care
- Operating Theatre
- Intensive Care and other ancillary charges
- Included only in certain plans:
- Out-patient tests
- Out-patient consultations with a specialist
- Overseas cover
- Cash payment for treatment received as an NHS in-patient
- Usually not included:
- Conditions you had before taking out the insurance (commonly known as pre-existing conditions)
- GP services
- Cover for long-term illnesses which cannot be cured (usually referred to as chronic conditions)
- Accident and emergency admissions
- Drug abuse, self-inflicted injuries, HIV/AIDS, infertility, normal pregnancy, cosmetic surgery, gender reassignment, preventive treatment, kidney dialysis, mobility aids, experimental treatment, experimental drugs, organ transplant, war risks, injuries arising from dangerous hobbies, and
out-patient drugs and dressing.
What will affect my premiums?
Whichever plan you choose, it is likely that your premiums will rise above the rate of general inflation. This is because of factors which affect how healthcare is provided in all western economies.
Each year more people claim on their insurance cover for private medical treatment. A hip replacement costs around £6,000 and is a common procedure, particularly for older patients.
The number and sophistication of treatments to improve quality of life is increasing steadily. Most Private Medical Insurance policies aim to cover these treatments as they become established medical practice and
Likewise, the sophistication and complexity of tests used to diagnose illness and injury is also increasing. Such tests are becoming far more widely available in private hospitals – for example, Magnetic Resonance Imaging (MRI) scans which costs around £500 each.
As people get older they are more likely to need and receive medical treatment, which means that Private Medical Insurance premiums will increase with age to reflect this.
Will I need to provide details of my health?
This depends on the method of underwriting you choose.
Moratorium underwriting – details of your medical history are not required.
Full Medical Underwriting – full details of your medical history are required.
What is Moratorium Underwriting?
This is when you are asked to fill in a form, but you are not asked to give details of your medical history. Instead, the insurance company does not cover any medical condition which existed for a stated period of time, usually in the last five years. These conditions may automatically become eligible for cover, but only when you do not have symptoms, or receive treatment, medication, test and advice (from your GP or a specialist) for that condition for the stated continuous period (usually two years), after your policy has started. If your insurance company offers a “moratorium” policy, they will give you printed information explaining how their particular moratorium works – you should always ask your Private Medical Insurance consultant to explain this for you.
What is Full Medical Underwriting?
You will be asked to fill in a form, giving details of your medical history. If necessary, the insurance company may write to your doctor for more information. It is essential that you give all the information you are asked for. If you don’t, it could affect your claim. If you are not sure whether or not to mention something, it is best to do so. If you have a medical condition which is likely to come back, it will probably be excluded, either indefinitely, or for a set period of time.
Will my cover be affected if I am disabled?
Insurance companies will not refuse to cover you because you are disabled. As with other pre-existing conditions, your insurance company may exclude cover for treatment arising directly from your disability.
How do I make a claim?
Apart from emergency admissions to NHS hospitals, all medical treatment has to start with a referral by your GP to an appropriate specialist. At this point you should inform your GP that you have Private Medical Insurance. You should also then you’re your insurance company to check that you are covered for the treatment that you will receive. In fact, some insurance companies insist that you do this. Your specialist will probably need to fill in and sign your claim form. Most insurance companies settle the hospital and specialist bills directly, but you should check this out with your Private Medical Insurance consultant before taking up a particular Private Medical Insurance plan. Some insurance companies make it a condition of the policy that you must pay all your bills for treatment and then reclaim the costs – this can cause serious cash flow problems.
Which Companies do Premier Healthcare Management recommend?
We work with most of the well-known names in the UK as well as some dynamic lesser-known providers. We will research the marketplace on your behalf and make our recommendations based on your particular individual or corporate situation.
I am in good health – what are the chances of falling ill?
The disturbing facts of life are that in the UK
- Each year over 130,000 people suffer a stroke and 80% of these survive at least one year or more
- One in three people will contract cancer sometime in their life
- One in four healthy men in the UK between 20 and 40 will have contracted a critical illness before age 65. For women, this is one in five and, of those who develop cancer, 40% will survive 5 years or longer
- One in six healthy men will suffer a heart attack before they reach 65 yrs of age
Can I depend on the NHS?
The NHS offers an excellent service for emergencies. However, there are over a million people today waiting for NHS treatment, many of whom have been waiting twelve months or more.
What are the benefits of Private Medical Insurance Schemes?
You could wait up to two years for a non-urgent operation under the NHS Scheme and may think of going “private”. Some typical costs of treatment are outlined below, which could prove prohibitive if you do not carry insurance. Under private schemes, you can be operated on within hours or days and have nursing care at home whilst you recuperate. Additionally, if you carry Income Protection and Private Medical Insurance, your income will be protected for up to a year, for a prolonged illness or medical condition which prevents you working. Critical Illness Insurance would cover you if permanently incapacitated.
How much do operations cost ?
Average costs (Source: Bupa):
- Open Heart Surgery £10,600
- Hip Replacement £7,000 – £8,900
- Spinal Operation £4,500
- Mastectomy £3,429
- Hysterectomy £4,000 – £5,050
- Gall Bladder Removal £3,500 – £5,800
- Cataract Removal £1,800 – £2,900
- Hernia Operation £1,300 – £2,450
- Tonsillectomy £1,550 – £2,150
- Skin Lesion Removal £300
How can a Long-Term Care Plan help me?
In the UK, around 40,000 homes are sold each year by their owners to meet the cost of care.
If you have saved all of your life to build an inheritance for your children, just consider how quickly this could disappear under the burden of your healthcare costs. The average cost of a room in a private nursing home is £17,316 a year. The average cost of providing 4 hours a day of domiciliary care is £14,600 a year.
Why not safeguard the things you have worked for all your life by protecting yourself against costs which may be inevitable? Children may also wish to consider buying this form cover for their parents to safeguard their own inheritance expectations. Can you afford not to take out a Living Care Policy which would provide up to £15,000 per year for life, tax free and linked to the retail price index upon claim?
How is the Private Medical Insurance Industry regulated?
The selling of Private Medical Insurance by Premier Healthcare Management comes under the Code of Practices of the following organisations:
- Association Of British Insurers
- Association of Medical Insurers and Intermediaries
- The British Insurance Brokers’ Association
Most insurance companies have their own complaints procedures in place; so if you have a problem with any part of your cover, speak to your insurance company first. If you are not satisfied with the way in which your complaint is handled, you can contact either the The Financial Ombudsman Service or the Personal Insurance Arbitration Service – depending on which one your insurance company uses.
Premier Healthcare Management specialise in private and corporate medical healthcare insurance and employee benefits for the UK, Europe & Worldwide. FREEPHONE 0800 783 3311