Protection Insurance
:: Private Medical
Insurance
PMI or hospital cash plans – what should you plump for?
What is the difference between private medical insurance (PMI)
and cash plans?
A typical PMI policy pays for the cost of medical treatment.
Subject to a limit on which hospitals can be used and, in some
cases, the type of medical treatment required, a PMI policy
will pay the costs of your treatments and your stay in hospital.
Following referral by your GP, the insurance will pay consultants’
invoices for investigations, operations and necessary treatment.
Normally, 100% of costs are met, meaning PMI can be expensive.
Hospital cash plans – or just cash plans – are lower costs alternatives
to PMI. Designed to complement the services provided by the NHS,
they cover the costs of every day healthcare, such as dental and
optical bills.
Additional features of some of the plans are payments towards
the cost of consultations and treatments such as physiotherapy
or even homeopathy or reflexology.
Cash plans pay towards the costs of everyday treatments, so
it is expected that you will make several claims a years – every
time you visit the dentist, optician or physiotherapist for
example.
Why are cash plans cheaper?
Individual cash plan claims are lower – they do not pay the
cost of treating specific illnesses, rather, bills are reimbursed
up to an agreed limit or there is a fixed daily amount if they
are hospitalised – which makes cash plan premiums lower.
PMI premiums continue to soar – this is due to the rising number
of claims and advances in medical science – and many people
find it outside of their budget.
Can I have a PMI policy and a cash plan?
Yes, many people who either subscribe to PMI themselves or have
PMI provided by their employers, supplement their PMI cover
with a cash plan. This means all their healthcare needs, whether
it be a trip to the dentist, or major surgery, are met.
What is ‘self-pay’?
An alternative to both PMI and cash plans is self-pay. You pay
the bill for an operation as and when you need it, so there
are no monthly premiums over many years. However, you should
consider this option carefully - what would happen if you had
the bad luck to be struck by a very serious illness? Could you
afford the cost?
What other plans are there?
There are many new types of cash plans coming onto the market
that deal with specific treatments or situations.
NEW
UPDATED PRIVATE MEDICAL INSURANCE GUIDE
When it comes to your health, you want the peace of mind that
you have got everything covered. Our guide to private health
insurance looks at the different types of medical insurance
available including hospital cash plans and specialist cover
such as dental insurance, enabling you to make an educated decision
as to which type of cover is right for you.
Send
me the Health Insurance Guide
