Taking out private health insurance is more popular than ever, but what exactly is it and what will it cover? We discuss the ins and outs of health insurance.
Although in the UK we all benefit from free healthcare on the NHS, taking out a health insurance or PMI (Private Medical Insurance) policy can provide you with extra support, convenience and comfort should you fall ill or have an accident.
Private health insurance generally covers the cost of in-patient treatment like tests and surgery, day-care, and out-patient treatment, though every policy will vary considerably in what is covered and what is excluded. On the whole however most health insurance policies won’t cover treatment for pre-existing or chronic conditions.
Health insurance is generally intended for short-term, curable illness or injury (often known as ‘acute’ conditions) rather than for conditions that are ongoing and incurable. The treatment will have to be for an illness or injury that occurs unexpectedly after you’ve taken out a policy, which with the right medical intervention can be cured relatively quickly.
If you are reliant solely on NHS treatment you may find that should you fall ill you are put on a waiting list before you’re treated. By taking out private health insurance it’s possible to cut the usual waiting period, choose where and how you are treated, as well as experience more comfort in hospital such as have a private room with a TV.
However it’s worth noting that PMI shouldn’t be seen as a replacement of NHS treatment but rather an add-on to the care you will already automatically receive. The doctor who treats you if you have health insurance is likely to be an NHS doctor rather than a ‘private’ doctor, and you’ll often get the same treatment as you would on the NHS – just more quickly, and in more comfortable surroundings.
What’s covered by health insurance?
Health insurance will not generally cover any pre-existing or ongoing conditions that you already have and are receiving treatment for, such as diabetes and asthma, though it is always worth checking policy details. In this way it’s usually not possible to take out a health insurance policy now for treatment you know you’ll need in the near future.
More often than not health insurance covers short-term unexpected accidents or illnesses that can be cured without lengthy medical procedures. Most will exclude treatments that you choose to have yourself (known as elective treatment) such as cosmetic surgery, and also often exclude fertility treatment, treatment for pregnancy, HIV, or psychiatric conditions, as well as some experimental treatments.
Private health insurance will however often cover diagnostic treatment, radiotherapy and chemotherapy, physiotherapy, as well as provide private ambulances, discounts towards annual check-ups, and home-nursing – though it is always important to check a policy carefully for what is included and excluded.
Many health insurance policies will provide in-patient cover, where some will provide out-patient only and others a combination of the 2. Some policies will give you cashback when you spend a night in an NHS hospital, so this is worth looking into.
Some policies also cover what’s known as ‘alternative treatment’ which could include homoeopathy, the services of a herbalist, or acupuncture.
Whichever health insurance you do choose, it's vital to read all the conditions and exclusions so you know exactly what you're getting and what's covered.
Read our guide on buying health insurance to find out all you need to know about taking out a PMI policy.
