The private sector is looking to play an increasingly important role within the NHS, especially following the general election according to industry experts. The Chief Executive of private health provider Bupa, Ray King, told the London Evening Standard, “Whichever colour of party comes into power they will make the NHS seek higher levels of productivity and that inevitably means engaging with private health providers.” The NHS already has many contracts with the private sector, including to treat some patients which they haven’t got beds or resources to treat themselves. By seeing the NHS look to the private sector for help, which seems to be a growing pattern, the public may start to wonder whether they should go directly to a private doctor or hospital for their treatment. If so, they may wish to take out a private medical insurance policy to help make the costs more affordable.


The NHS is undoubtedly restricted by its budget from the government and this is likely to take some form of cut over the five years as MPs try to pay back some of the huge debt the country is now in following the recession. People already have the option to top up their NHS care if they so wish, which could be because they feel there is a better treatment available that the basic NHS budgets will not allow for. An ideal way to make these top ups less of a monetary issue, is to take out low cost private health cover. Cash plan policies are among the cheapest and can provide the peace of mind of traditional private medical insurance but at a fraction of the cost, meaning that they are accessible for almost every budget.

The numbers of people who may take out private medical insurance could significantly increase over the next few years if the patterns noted by one study are correct. Gavin Wallis, in his 2003 report ‘The Determinants of Demand for Private Medical Insurance: Evidence from the British Household Panel Survey’ found that when government spending on public health care increased around the turn of the new millennium, the number of people who had a private medical insurance policy reduced. As the NHS budget looks increasingly likely to be cut over the coming years, it might seem logical then that the number of people who have private health cover could increase. This could be because they may be concerned that the level of care on offer could become limited or they may wish to be covered in case they wish to top up their NHS treatment.


The amount of government spending on healthcare is described as having a ‘lag’ effect on the number of people taking out private medical insurance. This is because of the effect of funding on the length of time people have to wait for treatment and there is evidence to suggest that the longer the waiting lists for NHS care, the more likely people are to opt for private health cover. Waiting times are one of the main reasons why people take a quote for private medical insurance as private hospitals can provide a much quicker referral to see a consultant and for any operation that they may recommend. When people become ill, the majority wish to recover in the shortest time possible and so if budget cuts are made to the NHS in the near future and waiting times increase, a quote for private health insurance could become an attractive option for an even larger proportion of the population in the UK.

The best ways to prevent cancer are similar to those to prevent obesity and heart disease.A third of cancers are caused by smoking, a third by poor food and a lack of exercise and the other third by a mixture of other causes including genetic predisposition.

A six year research analysing cancer risks show how to reduce this risk (excluding smoking). Some are unsurprising, including physical activity, limiting intake of red meat and limiting alcoholic drinks. More surprisingly, it also highlighted that being a little overweight is also a risk. One of best things people can do to avoid cancer is to maintain a body mass index (BMI) of 21 to 23. Previous BMI guidelines have advised healthy levels to be between 18.5 and 24.9. Therefore to reduce cancer risk you must avoid getting fat at all.

It seems it is agreed that for cancer prevention is better than cure. Dealing with cancer in America costs $100 billion per year, therefore there is a big emphasis on prevention and early detection. Two large insurance companies offering corporate health insurance, income and disability insurance to their employees are reducing their premiums for those members who agree to answering a detailed questionnaire about their way of life and undergo a series of tests. Its conclusions can detect a person who is at risk to a type of cancer due to biochemistry and/or lifestyle and suggest advice or tests for prevention or early detection.

The aim to extend the scheme to lower income groups in America who do not have private medical insurance.

Source: The Economist
To avoid the Big C, stay small

Last year was a good year for private medical insurance, cash plan policies in particular. Despite the UK heading into a recession, the number of people taking out private health cover actually rose and it seems that businesses weren’t put off by the financial situation either. The latest statistics released by Employee Benefits / Simplyhealth Healthcare Research 2009 suggest that the number of companies taking out private health insurance for their staff in the form of cash plan private medical insurance shot up by 180 percent in the past year. One reason for this huge increase in the number of companies holding employee health cover could be because they have decided to switch from a traditional private medical insurance policy to the more cost efficient cash plan policy, of which Freedom Healthnet is one supplier.


The research also found that small businesses (with a workforce of 100 or less) were the most likely to have a cash plan private medical insurance policy for its staff. Over a quarter of small businesses in the UK now hold one and this could be because they are one of the most affordable ways to provide private health cover, which is considered to be one of the top employee benefits a company can provide. In the past 12 months alone, the number of companies who have recognised the importance of providing good benefits for their workforce in the UK has risen from 5 percent to 14 percent. The recession may seem like a time when unnecessary expenses should be avoided but private medical insurance has defied this, showing that it is widely upheld in the view of bosses who recognise the importance of investing in the health of their staff.

The number of people who are paying for their own private medical treatment within private hospitals is decreasing, according to the company who own BMI Healthcare which run over 50 private health care centres in the UK. More people are taking out private medical insurance to cover to cost of surgical procedures in private hospitals, such as BMI. This number increased last year despite a recession, and it clearly demonstrates that that this is the most popular option to cover private healthcare costs. Asking the hospital for a self pay package is a way to have access to top quality private treatment on a pay-as-you-go basis. You get a self-pay price from the hospital (which you can then often negotiate down) and then you can compare private hospital services and costs. A self-pay arrangement is useful because of the unpredictable nature of falling ill, but at the same time could end up costing huge amounts of money if a major operation is needed. Private medical insurance, whether traditional or bespoke, is a way to avoid this huge cost, by just paying a small monthly premium.

Search engine Google has also started to report an increase in the number of people searching for private medical insurance on the internet after a decline in 2008 and the beginning of this year. This could be for a number of reasons:

• Firstly it could be people who are looking for a cheaper alternative to their existing private medical insurance policies. Freedom Healthnet could offer a solution to this problem as its cash plan style health insurance is one of the lowest cost ways of having access to this top quality level of medical care.
• Secondly, it could be people who are looking for a quote for private medical insurance. Quotes can be gained quickly on easily online on company websites such as Freedom Healthnet.

So, how could health insurance from Freedom help you with NHS Top Ups?
Mrs A from London is diagnosed with breast cancer. She has private medical insurance with Freedom Healthnet and contacts the claims department. Upon confirmation of her condition by her consultant and approval of her claim, she receives a payment of £4,500*, tax-free. Mrs A decides to have her surgery on the NHS and keeps the money. She decides she wants to top up her NHS treatment by paying for a specific drug and uses the money paid to her by Freedom to fund this.

Get an instant online health insurance quote and instant get cover from Freedom Medical Insurance.

*Please note: amounts are approximate

Private health insurance company, Freedom Healthnet Ltd, is delighted to announce its move to larger offices within the prestigious commercial development of Bourne Gate in Poole. Nestled with the DVLA, Virgin Media and other quality businesses, the growth into new offices demonstrate how successful the Freedom health insurance policies are with both corporates and individuals.

The Freedom Medical Insurance Policies were introduced 4 years ago as the company identified a significant gap in the market. There were either hospital plans - which paid out a fixed amount per day when you had to spend time in a hospital - or there was medical insurance which tied you to a hospital, such as BUPA or BMI. Freedom Medical Cover offered something completely different. Upon approval of an inpatient claim, the health policies would pay out cash, directly into the bank accounts of the claimant, before the treatment took place. This would then enable the patient to do one of 3 things:

1. pay for their treatment in the private hospital of their choice


2. wait for treatment on the NHS and keep the money


3. find a quality hospital abroad and get treatment there.

All of these options gave the possibility of excess cash for the customer to keep - perhaps to pay towards a holiday to help recovery or to support time off work, for instance.

Many people do not realise that operation costs can vary substantially from one private hospital to the next. The Freedom health policy allows the client to shop around and find the best deal OR they can use the money towards getting the best consultant in the country (or in Europe, or in the US) and paying the difference themselves. The whole purpose of medical insurance from Freedom was to give the policyholder choice.

Freedom's employee medical insurance has been increasingly taken up by companies wanting to reduce the amount of time their workers have off sick and also to offer them an extra incentive to stay at the company.

The expansion of the health insurance provider into its new offices is indicative of the unique offering and quality service that Freedom Healthnet provides to its clients.

The takeup of Individual Medical Insurance is on the increase in the UK as publicity over fatal infections in NHS hospitals reaches new heights. The Telegraph quotes how 90 patients cared for by Maidstone & Tunbridge Wells Hospitals NHS Trust died as a result of infection from a nasty superbug, Clostridium difficile. With recent photographs of dirty hospitals in the press, the rise of MRSA and other such bugs and the often-lengthy waiting lists, people are turning to private health insurance to rescue them from the failing NHS.

According to The Telegraph, about 7.4 million people in the UK already have health insurance and this number is now on the increase. When faced with a mixed sex ward or a private room by yourself when you are ill, many opt for the latter. Moreover, the prospect of being treated instantly instead of waiting months to see a consultant and then more months for treatment is instantly attractive. Private health insurance offers choice and people are really beginning to understand the benefits associated with that choice.

With reports that the funding for the NHS is going to slow down after 2008, the increased demands of an expanding population, coupled with increasingly expensive drugs and procedures will not be able to be met. BUPA has produced a report illustrating that there will be an £11 billion gap in the funding of the NHS by 2015.

All of these factors are driving people to the conclusion that private health insurance is the way to go. Many are lucky enough to have employee health insurance via their work for themselves and their families. Indeed, the ABI state that about half of the number of people covered in the UK have insurance policies via their employer.

The Association of British Insurers, the ABI, published guidelines this month which updates the glossary of terms used in all private medical insurance policy documents. A number of organisation types have been consulted in the generation of this definitions of medical terms including the PMI industry, the ABI and the cancer charity, Cancerbackup.
The objective of this is to ensure clarity for consumers to ensure that customers fully understand the terminology used in their insurance policies and so they have a better understanding of what is and what is not covered, particulary when it comes to health insurance cover for cancer. Freedom has always tried to ensure clarity on its policy documents and our glossary of insurance and medical terms on the website supplements our comprehensive definitions in our brochures, which are sent out to clients upon request.
With about 6 million people covered by private medical insurance in the UK, it is important that we work towards clearer definitions and helping our clients to be fully informed about their health insurance cover.

Employers may put an end to health screenings and medical check-ups due to new income tax regulations, according to Employee Benefits & Health Insurance Magazine.

The warning follows an amendment to the Income Tax (Exemption of Minor Benefits) Regulations 2002, introduced by HM Revenue and Customs (HMRC).

It states that health screenings will only be exempt from tax if they are available to all employees and medical check-ups must also be available to all staff, or those who are identified in a screening as requiring one.

Adrian Norris, managing director of Buck Consultants (Healthcare) told the industry publication, Health Insurance magazine, the amendment was a “bombshell”. He says extending screenings to all employees would create enormous costs for businesses.

He said: “Questions need to be asked about what the objective was behind the regulations, health screening is commonly described as executive screening because the majority of organisations only buy it for their senior staff as an executive benefit. HMRC seems to be operating in its own world and making its own judgments about how benefits and tax fit together.”

Chris Evans, head of health and risk development at PIFC Consulting, also told the magazine the regulations appear to be a “crude attempt” to encourage businesses to offer health screenings to all of their employees.

He suggested that the amendment could mean many employers will cut the services if they believe the tax burden outweighs the benefits.

But Dudley Lusted, head of corporate healthcare development at AXA PPP healthcare, said that it is not clear if all staff have to be given the same level of health screenings for them to be tax exempt.

He suggested that employers could offer cheaper screenings to all of their staff and more extensive screenings to their executive employees.

Furthermore, he said that not everyone would have to actually undergo the screening but it must be available to all staff or employers will face a tax charge.
He told Health Insurance magazine: “Unless the employer is willing to pay this tax, there will be a reduction in the number of employees taking up the benefit.”

Freedom Healthnet is appearing in the inflight FlyBe magazine this month. In an article discussing The Health Tourist, FlyBe reviews how increasing numbers are going abroad for medical treatment.
Citing the fact that many people are concerned about UK hospital waiting lists, the article notes that the numbers of people visiting foreign countries for operations and treatment. With long NHS waiting lists and the cost of private healthcare going up every year, the appeal of affordable and superior treatment outside the UK is becoming increasingly attractive, the article states. The piece then goes on to point out how Freedom Health Insurance offers 'an appreciably simplistic approach to healthcare-protection plans'. It discusses how Freedom pays you money upon approval of inpatient claims and how you can then choose where to have your treatment. The FlyBe magazine article then indicates how there are no restrictions on treatment location and no limited list of hospitals, unlike other private healthcare providers. With Freedom you can have your medical treatment abroad. It indicates that often medical tourists will then have a holiday in the location of their treatment afterwards, as a way to enjoy the region and the sunshine and just relax.

The article points out the choices with Freedom Health Insurance:

• selecting to undergo treatment anywhere in the world
• seeking treatment at a private hospital in the UK as a self pay patient
• having your treatment at an NHS hospital in the UK
• the plan is sutiable for persons 18-75 years old
• current medical conditions are excluded and will be subject to underwriting (as with any policy)

In an article on 26th August 2007 entitled In search of sun, sand and surgery, The Times reports how record numbers of UK residents are jetting off abroad for surgical procedures. With everything from cosmetic surgery such as tummy tucks and breast augmentations to vital operations such as hip replacements and heart bypasses now being conducted abroad, the article points out the huge savings which can be made outside of Britain.
50,000 people went abroad for surgery in 2006 and the number is expected to increase by 50% again this year, according to treatmentabroad. Most of this number will go to the continent for dental work but numerous people are sourcing their health treatment from countries like India and Thailand. The price comparison for a hip replacement in the UK is £10,000 whereas in India it is approx. £3,500. Even factoring in flight and local accomodation there is still a saving of about £2,300 to be made.
This has implications for individual private health and medical insurance in that those policies which offer a cash payout upon approval of claim, like Freedom Healthnet, are able to deliver what an increasing number of the UK population want. With a cash payout for a gall bladder operation (Laparoscopic cholecystectomy) would be about £4,362 from a freedom health insurance policy whereas an equivalent operation in Belgium would only cost £2,500. The cash saving is the policy holder's to keep, tax free.

The article also points out that surgery is never risk-free and the need to check a surgeon's credentials thoroughly.

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The latest news connected with health issues and mobile phones has been released by the UK Mobile Telecommunications and Health Research Programme, the BBC reports today. Funded by the government, the research has been looking at the impact upon health of mobile phones, masts and base stations and has found that there is a "hint" of a higher cancer risk associated with them. The study notes the need for ongoing research to be undertaken as few users have used mobile phones for periods in excess of 10 years.

Following lowered prices by health insurance companies, customers are slowly returning to private medical insurance cover according to The Daily Mail's article Private Health Revival 24 June 2007 written by Stephen Womack. This is just one of a flurry of insurance articles being highlighted by the press at the moment as criticism of the NHS intensifies and the issues with health insurance in the states reach a climax.

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The ABI, Association of British Insurers, released figures that showed the numbers of people taking out private health insurance increased last year, after declining in previous years. 110,000 extra health policies were taken out in 2006 with 5.88 million people in the UK now covered for health care either via an individual health insurance or a corporate medical insurance policy which provides employee health cover.

Medical insurance companies have been working to drive down the cost of health insurance, excluding certain longer-term medical conditions or eliminating unnecessary extras. Often these longer term conditions are covered amply by the NHS and private treatment is not essential.

Freedom's low cost policies, one of which was highlighted in a health insurance article in The Independent recently as the most competitively priced comprehensive insurance policy, provide basic cover through to a comprehensive policy with extras that include alternative therapies.

With so much going on within the private health insurance industry at the moment, we wanted to ensure that we were keeping a record of interesting developments that affect us all. An information blog was the most appropriate medium for our team to reflect on, comment upon and generally digest the latest health insurance news.

Utilising our talented and dedicated staff, we will endeavour to bring you stories, news and PMI facts plus latest information, videos and images associated with the medical insurance industry.

Please note: the views expressed within this information blog are those of individuals and are not representative of the company.