Compare private health insurance providers 2024 - Times Money Mentor (2024)

Although the NHS provides free healthcare across the UK, some people prefer to use the private sector instead. So, we explain how private medical insurance works, if it’s worth it, and if it can save you money.

Private healthcare is a growing sector in the UK. According to the Private Healthcare Information Network (PHIN), an industry body, there were a total of 898,000 private hospital admissions across the country last year. This is up 7.5% on last year’s figures and is a number which has increased for the third consecutive year.

Most of these admissions had their bills paid by private health insurance.

It’s a type of insurance which could get you seen quicker, but there are costs to consider. And, as with all insurance policies, there will also likely be limits, restrictions and things that you cannot claim for.

In this article, we explain:

• What is private health insurance?
• The best private medical insurance providers
• Does health insurance covers pre-existing conditions?
• How much does private healthcare cost?
• Is private health insurance worth it?

Related content: Guide to life insurance

What is private health insurance?

Whether you are worried about cancer, have a niggly knee or some other symptoms that are troubling you, then private healthcare insurance has an array of benefits, albeit coming at a cost.

In return for your premium, you’ll get swift access to private healthcare from assessments and diagnosis through to treatment and aftercare.

You will also often get to choose which specialist you see and may be able to attend a private hospital close to you.

Private health insurance doesn’t just support your physical health either. The best private health insurance companies are increasingly providing more support for mental health too.

Read more: Critical illness cover vs. income protection insurance

What does private health insurance cover?

Exactly what is covered by private health insurance will vary between providers and the level of cover you choose.

However you can typically expect the following with comprehensive private health insurance:

• Private consultations with specialist doctors, but unlikely to cover private GP consultations
• In-patient treatment, including surgery
• Out-patient services including scans, tests and x-rays
• Physiotherapy for problems such as back pain or sporting injuries, generally limited to 12 sessions
• Access to round-the-clock medical helplines and virtual GP appointments

However it is important to note that private healthcare insurance won’t cover all your medical needs.

There are some important exclusions, including:

• Emergency treatment. If you need urgent medical help you should always consult your GP, call 999 or head to Accident & Emergency.
• Maternity care. Although you can pay to give birth in a private hospital, it won’t be covered by your insurance policy, nor will any regular pregnancy appointments.
• Chronic conditions. You won’t be able to claim for arthritis or diabetes treatment, for example.

Our best private medical insurance providers

Below are some of our best private medical insurance providers:

Does private healthcare cover pre-existing medical conditions?

Pre-existing medical conditions are health problems that you already have when you first take out a private health insurance policy.

These conditions are highly unlikely to be covered by your policy. However with a “moratorium” policy, cover may be reinstated if you go two years from the date you took it out without suffering any symptoms or requiring any treatment.

Another exception may be if you have private health insurance from your employer. Some top-level schemes will provide cover for pre-existing conditions.

How much does private healthcare cost?

Private healthcare prices can be eye-watering.

The average cost of a hip replacement is likely to be around £13,402, according to research from the independent insurance information service myTribe.

Meanwhile you could be spending up to £3,200 on having a cataract removed and £8,000 for slipped disc removal.

By comparison the average cost of private health insurance is around £960 a year or £80 a month, according to myTribe.

Costs can vary substantially though and varies according to factors such as your age and where you live.

Your health and lifestyle come into play too. For example, a smoker will pay more than a non-smoker.

A significant driver of cost is the level of cover you choose too as you will see when you are comparing private health insurance plans.

Also bear in mind it will cost more if you want family private health insurance with a partner and children included. We have more in our guide to family life insurance.

How to get cheap private health insurance

Although private healthcare costs can be off-putting, the good news is that there are variety of ways you can keep costs down.

• Match your cover to your budget and priorities – Do you really need additional benefits like dental and optical cover? Is psychiatric care you priority? If not, look for a policy that does without this cover
• Increase your excess – Agreeing to pay a contribution to your claims can be a great way of cutting costs without reducing your overall cover
• Choose a six-week wait plan – Some insurers will reduce your costs if you agree to use the NHS if you can be seen within six weeks (or four or eight weeks, depending on the provider)
• Reduce your hospital list – The most expensive policies will let you choose a hospital. However, you can save a lot of money with a plan that only gives you access to a more limited network of hospitals
• Stay fit and don’t smoke – Healthy individuals are less likely to claim. So private healthcare plans will often reward people who don’t smoke and have a healthy lifestyle with cheap private medical insurance.

The benefits of private health insurance

The primary benefit of private medical insurance is that you can access specialist treatment quickly. For certain treatments on the NHS, you’ll be put on a waiting list instead. So quick and efficient treatment can put your mind at ease.

In addition, going private means you may have more choice. Under the NHS, you may not always be able to choose your specialist but under your insurance this may be an option.

The disadvantages of private health insurance

It’s always best to read through your policy before signing on the dotted line. One of its biggest disadvantages is that it might not offer a comprehensive level of cover, so it won’t pay out for certain injuries or illnesses.

Do I need private health insurance and is it worth it?

The decision over whether to buy private medical insurance is entirely yours and based on your own individual needs.

If you are worried about the length of NHS waiting lists, then private health insurance could provide you with priceless peace of mind.

Alternatively if you are more relaxed and have faith that the NHS will be there when you need it, you may not consider it a priority or worthwhile expense.

But for some people it’s also a matter of practicalities. If you are self-employed, for example, private healthcare insurance could mean poor health or an accident doesn’t stop you earning money any longer than necessary.

Alternatively if you like the idea of going private when you need to, but don’t fancy shelling out for insurance, you can always consider paying it for yourself.

You can either earmark some of your savings for medical expenses, or ‘self-insure’ by paying money into a dedicated savings account each month, but you must be mindful however that medical expenses can be very expensive.

You may find that you have used all your savings before you complete the required medical treatment.

How do I choose a private healthcare plan?

You can buy private health insurance direct from providers. Or you could use an online comparison website or broker who will scour the market for you.

Given the complexity of the product and the range of options, the latter is often a sensible option to ensure you find the best private health insurance for you. You can find one in your area with the Association of Medical Insurers and Intermediaries’ online tool.

Before you start researching your options it’s also worth double-checking whether private health insurance is a benefit you can claim at work as part of your employee benefit package. This will be the cheapest way of arranging cover.

Find out more: Mortgage protection insurance vs. income protection

Other types of insurance to consider

Private health insurance is the only policy that will directly reimburse you for the cost of private healthcare.

However there are other products that can provide you with financial support if you are seriously unwell or die.

Critical illness insurance for example pays out a lump sum if you are diagnosed with an illness or condition covered by the plan, while life insurance pays out a lump sum if you die during the term of the plan.

These two different types of covered are often bundled together in one plan with one monthly premium.

Alternatively you can go for income protection. Rather than paying a lump sum, it pays a monthly benefit to replace your salary if you suffer an illness or injury that stops you working.

FAQs

How to complain about your provider?

Before escalating the issue, get in touch with your insurer to see if they can resolve your concerns. If you’re still unsatisfied, you can make a formal complaint with the Financial Ombudsman Service.

Does private health insurance go up if I use it?

When it comes to renewing your insurance, your insurer will typically use your claims history to help price your premium. So, if you do claim, you could expect a pricier policy.

Is private health insurance tax deductible for self-employed?

You can only claim private health insurance as a tax deductible expense if you’ve bought it under a business policy. A personal health insurance policy isn’t tax deductible.