Increased Demand for Private Health Coverage Propelled by Long Public Healthcare Waiting Times
The surge in demand for private healthcare services in the UK has been a notable trend, with businesses playing a significant role in driving this growth. Employer-provided private medical insurance (PMI) is becoming increasingly popular, as more companies offer it as part of their employee benefits packages[1][2].
This growing demand has resulted in a rise in private healthcare usage, partly due to pressure on National Health Service (NHS) services. Unmet waiting time targets for planned surgeries and other procedures have prompted more workers and employers to turn to private healthcare options[1][2].
However, this increased demand has also pushed private medical insurance premiums upward. UK private medical inflation has consistently been higher than the European average over recent years. Premium costs rise with age and claims history, with basic plans starting around £28-29 per month for younger adults and rising to over £140 per month by age 70[2].
The impact on insurance premiums is profound, with rising claims incidence and the need for more complex, costly treatments driving up costs[2]. The private healthcare sector is facing increased costs due to staff competition with the NHS and facility demand, and insurers are investing more in provider relationships and services to manage costs[2].
Access to private healthcare services can also become challenging due to higher demand from employers' PMI offerings. Private providers may prioritise corporate-insured patients, potentially limiting access for self-pay or other groups. Staff shortages affect both NHS and private sectors because they draw from the same workforce pool, potentially worsening NHS capacity issues and indirectly increasing private sector demand further[2].
Private hospitals in London have expanded capacity, with a 40% growth forecast from 2018 to 2023. However, outside London, facilities and experienced consultants for certain specialties remain limited, affecting patient choice[1].
In light of these developments, Brett Hill, Head of Health & Protection at Broadstone, stated that employer demand for health insurance is boosting the private healthcare sector[2]. The increase in demand for private healthcare services is creating a cycle where NHS pressures push more people to private care, raising costs and demand on private providers, which then influences insurance pricing and potentially restricts patient access or choice[1][2].
This dynamic is important in the context of ongoing NHS reforms and efforts to improve out-of-hospital care and reduce strain on hospitals[3][4]. As the demand for private healthcare services continues to rise, it is crucial to consider the potential impact on insurance premiums and access to these services.
References: [1] Broadstone (2024). Private Healthcare Market Report 2024. Retrieved from https://www.broadstone.co.uk/resources/private-healthcare-market-report-2024 [2] Hill, B. (2024). The Rising Cost of Private Healthcare: Implications for Employers and Employees. Retrieved from https://www.broadstone.co.uk/blog/the-rising-cost-of-private-healthcare-implications-for-employers-and-employees [3] NHS (2023). Long Term Plan for the NHS in England. Retrieved from https://www.longtermplan.nhs.uk/ [4] King's Fund (2022). The Future of Health and Care: Five Year Forward View for the NHS in England. Retrieved from https://www.kingsfund.org.uk/publications/five-year-forward-view-nhs-england-2021-2026
- The surge in employer demand for private medical insurance (PMI) has influenced the opinion that this trend is boosting the private healthcare sector, as seen in the statement by Brett Hill, Head of Health & Protection at Broadstone.
- The growth in private healthcare usage, driven by increased demand from businesses and employer-provided PMI, has raised concerns about the cost of private medical insurance premiums, which have consistently been higher than the European average over recent years.
- In the context of ongoing NHS reforms and efforts to improve out-of-hospital care, it's essential to have a science-based understanding of the impact of business activities, particularly those involving private healthcare services and finance, on health-and-wellness outcomes, as well as the associated costs and access to these services.
