Karen Woodley
|Head of Sales
A recent report has revealed that as many as one in six NHS users were prepared to arrange private healthcare if they had to wait longer than 18 weeks for care1. 18 weeks, or over a third of a year, is the maximum length of time the NHS says a patient should wait before receiving treatment.
The research, conducted by The Institute for Public Policy Research (IPPR), found that nearly a third (31%) of patients experienced difficulties accessing NHS services during the pandemic. Of this group, 12% went private and another 26% considered the option. The think tank also predicts that accessing high-quality care on the NHS could become as challenging as finding state-funded dental treatment.
These changes may well mark the beginning of a shift in the UK healthcare market. Currently, 13% of Britons have private medical insurance2, but if the trends reported by the IPPR continue, these figures could grow. For advisers, this offers an opportunity to discuss an important topic with clients who are keen to safeguard their physical and mental health as much as their finances.
Whilst the NHS continues to provide a valuable service for many, growing patient backlogs have highlighted the value of private healthcare for some. There are clear health benefits to accessing care more quickly, but advisers also have an opportunity to discuss the financial benefits of cover with their clients.
Some may consider private healthcare policies to be unaffordable, whilst others may think that one-off private treatment (known as self-pay) will be more cost-effective in the long run. The flexibility of health insurance products means that cover can be tailored to fit a client’s budget and needs, helping advisers to overcome any objections around cost at the point of sale.
What is more, the price of one-off self-pay treatments can be unexpectedly high and an unrealistic option for many. If a client needs elective surgery or treatment and doesn’t want to wait to be seen by the NHS, then they will need to have the money available to pay for treatment. This means they could be forced to dip into savings or even look at accessing funds held in investments.
In addition, compared to the protection of having health insurance, paying for a one-off treatment is likely to only cover the upfront costs. This could mean additional financial expenditure for clients further down the line. If a patient needs aftercare, such as an extensive programme of physical therapy, they will probably need to dip even further into their savings. Little by little, the financial burden increases.
By contrast, health insurance premiums provide a regular, predictable outlay each month. This way, clients can plan for the year ahead and know that they are covered in the event of illness – including pre-and post-care – without having to rely on their savings or investments to fund necessary treatment. Advisers may also want to discuss the wider benefits of health insurance policies, such as remote GP consultations and telehealth apps, which can often exceed the value of the core policy itself.
Clients can use these services to manage their health proactively through GP appointments, medical consultations, and expert advice, meaning conditions could even be resolved before an elective treatment is needed. This is not only the best-case scenario for the client’s health but also their finances.
At a time when climbing NHS waiting times are prompting many people to consider private healthcare, advisers play an important role in helping their clients manage the financial aspects of this decision.
This article originally featured in Money Marketing on the 20th May 2022.
1 – The State of Health and Care 2022
2 - https://www.theguardian.com
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