I know from conversations I’ve had with many Charlton House clients in Hong Kong that private medical insurance (PMI) is a common component of most remuneration packages.
But what happens when you return to the UK and your new employment contract doesn’t include a PMI option? Or what happens if you’re returning home to retire?
At times when the NHS was well-funded and effectively organised – such as at the turn of the century – it was less critical to have a private healthcare option up your sleeve.
But at the present time, with the NHS facing the biggest crisis in its 74-year history, I’d say that some kind of PMI plan was close to being essential for anyone who can afford it.
Read about seven important reasons why PMI should be high on your list of financial priorities.
1. Private medical cover can provide you with valuable peace of mind
If you were to set out all the things you’re concerned about, it’s likely that your health, and that of your loved ones, would be high on your list.
The aim of PMI is to take away that concern by providing you with prompt access to medical care and treatment when you need it.
As former UK Prime Minister, Margaret Thatcher said, in June 1987, “I […} insure to enable me to go into hospital on the day I want, at the time I want, and with a doctor I want.”
That kind of reassurance – that you and your family can be looked after promptly if you fall ill or suffer an accident – is utterly invaluable.
2. The NHS is in crisis
For a health service that was already struggling after nearly a decade of limited year-on-year funding increases, the impact of the Covid pandemic on the NHS was cataclysmic. For almost two years, Covid became the overriding priority, and other services naturally deteriorated.
On top of that, there’s the growing cost of health provision, and the financial challenges of people living longer with illnesses they might have previously died from.
The new NHS focus on early intervention and prevention of avoidable illnesses will eventually have a hugely positive impact, but it’ll take time for that to work through the system.
In the meantime, the waiting time for many operations can be over a year, and even booking a simple GP appointment can take patience and tenacity. An NHS England report recently highlighted in the Guardian suggested that nearly 7 million people are currently waiting for hospital treatment.
All this creates uncertainty for anyone needing treatment and makes it perfectly understandable for you to want to look for alternatives.
3. You’ll have prompt access to medical treatment
Given the extended waiting times, one of the key advantages of PMI is being able to “jump the queue” and secure medical attention promptly.
The waiting times of up to a year or so I referred to in the previous section can not only be painful and frustrating but also mean that a particular ailment can get worse. This can then mean extended recovery times and a longer period when you’re unable to work or enjoy your retirement.
PMI not only means quicker access to an appointment, but it also makes diagnosis faster. So, you benefit from the reassurance of knowing what’s wrong with you far more quickly than if you’re having to wait in a queue for even a first appointment with a specialist.
A friend of ours has recently just finished treatment for cancer and received the all-clear. She was lucky enough to have a PMI policy through her employment and underwent all treatment through a local private hospital. While I assumed that cancer patients would be prioritised under the NHS, I was startled when she explained that had she gone through the NHS, she would still only be 50% of the way through treatment by now.
4. Private medical insurance can give you an improved level of service
As well as quicker service, you may also find PMI provides you with better service.
The strain on NHS and stretched resources means that face-to-face time with a consultant and other medical staff is at a premium. With less demand on private health provision, it’s likely you’ll get a more detailed and thorough consultation.
If you do need to be admitted to hospital, you’ll very likely get your own room in a private hospital rather than sharing a ward with others. This gives you greater privacy and space, for both you and your family when they visit.
PMI also gives you the option of being able to access a second opinion if you aren’t happy with an initial diagnosis. Additionally, by going the private route for treatment you’ll probably benefit from extra diagnostics, such as scans and imaging.
5. PMI often provides valuable additional health provisions
As well as the treatment for specific illnesses or injuries, many PMI policies cover you for additional benefits – either written into the terms and conditions, or for an additional premium.
For example, many PMI providers will offer an annual health check. This can both provide you with the comfort that you’re in good shape, or provide an early diagnosis of possible problems, such as diabetes and some cancers.
PMI also means you’ll be able to access extensive post-operative physiotherapy, a service that is not normally available on the NHS.
Finally, private health care can also give you access to specialist drugs and treatments that might not be available through the NHS – either because they’re too expensive or aren’t approved for use by the clinical regulator.
6. There are advantages if you’re self-employed
If you’re self-employed, it’s often the case that if you aren’t working, you aren’t earning.
So having a PMI plan in place, can be a godsend if you fall ill and are unable to work normally.  Knowing that you should be able to access treatment quickly can give you the reassurance that periods when you’re unable to work through ill health will be kept to a minimum.
There’s also the additional financial advantage of being able to deduct the cost of PMI cover from your tax bill as a legitimate business expense.
7. Cover can vary between PMI providers
As with nearly all forms of insurance, the type of cover you get with a PMI plan will depend on the policy you buy.
The more basic policies usually pick up the costs of day-care surgery and most inpatient treatments, while slightly more expensive plans will cover outpatient treatment.
Some policies will also cover access to mental health services – something that received growing awareness during the pandemic.
The different variables mean that it can often be important to get advice from an expert to help you find the right type of cover for you and your loved ones.
Get in touch
If you’d like to find out more regarding PMI provision for you and your family, please get in touch. You can contact us by email or, if you prefer to speak to us, you can reach us in the UK on +44 (0) 208 0044900 or in Hong Kong on +852 39039004.
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