Premiums for private medical insurance could end up being up to twenty percent lower following a new ruling from the Monopolies and Mergers Commission (MMC). At the end of last month, the Commission told the British Medical Association (BMA) that it could no longer publish guidelines on the fees that consultants can charge for private work. The corporate affairs minister, Neil Hamilton, told the Independent that this has meant that doctors have been able “to charge higher fees than would otherwise be possible”. With this now eliminated, the cost of private health care could be reduced and private health insurers will then be able to pass on the savings to their customers and this could mean that more people decide to take out a quote for private health cover in the future.


At the minute, Bupa is still allowed to publish a list of the maximum fees they charge for each procedure and some people have called for this to be stopped as well. The MMC say they are allowing it to continue because it has a ‘restraining effect on consultants’ charges,’ despite thei research showing that 70 percent of the market is influenced by Bupa and other insurers. If Bupa are included in these new rules, it’s been predicted it could speed up the savings to private medical insurance policy holders. Now these rules have been brought in, it seems likely that the next step will be for private consultants to advertise their prices to family doctors and increased competition could bring down costs even more. Private health insurance companies like Freedom Healthnet already look for ways to save their customers money on their premiums. One way in which Freedom Healthnet does this is by giving a cash lump sum to patients. By being in a position to pay up front for treatment, the cost of the treatment will be lower and savings can be passed on to other policy holders.