Health insurance is essential, but premiums can be expensive, especially if you need comprehensive coverage. However, there are ways to lower your health insurance costs without sacrificing the quality of care. By making smart choices, you can keep your premiums affordable while still benefiting from the protection private medical insurance (PMI) provides.
1. Compare Different Providers & Policies
Not all private health insurance plans are created equal. One of the best ways to reduce your costs is to compare multiple providers and policies.
- Use comparison sites like Choose Health Insurance Quotes or MoneySuperMarket to compare prices.
- Look beyond the monthly premium—consider excess fees, out-of-pocket costs, and coverage limits.
- If you already have a plan, check whether switching to a different insurer could save you money.
2. Increase Your Excess (But Not Too Much)
An excess is the amount you agree to pay when making a claim before your insurer covers the rest. Increasing your excess can significantly lower your monthly premium.
- A higher excess means lower premiums, but ensure it’s an amount you can afford.
- Some insurers offer “capped excess” policies, limiting how many times per year you pay an excess.
- Look for plans where excess fees only apply to specific claims, such as inpatient hospital stays.
3. Choose a Policy with Tiered Coverage
Many insurers offer different tiers of coverage, from basic to comprehensive.
- Basic policies cover inpatient care but exclude outpatient treatments.
- Mid-range policies include some outpatient care but may exclude extras like physiotherapy or mental health treatment.
- Comprehensive plans cover most treatments, including dental, optical, and mental health services.
If you rarely visit specialists, a basic or mid-range plan could be a cost-effective option.
4. Consider a 6-Week NHS Wait Option
Some private insurers offer a 6-week NHS wait policy, which means you’ll use the NHS for any treatment with a waiting time of six weeks or less. If the NHS can’t provide the treatment within this timeframe, your insurance covers private treatment.
- This can significantly reduce premiums while still giving you access to faster care when needed.
- It’s a great compromise for those who want private healthcare but are happy to use the NHS for shorter wait times.
5. Take Advantage of Employer Health Insurance
If your employer offers private health insurance as a workplace benefit, enrolling in their plan could be cheaper than buying an individual policy.
- Some companies offer free or discounted health insurance as part of their employee benefits.
- If your workplace covers part of your premium, your out-of-pocket expenses will be lower.
- Family members can sometimes be added to workplace plans at a reduced cost.
6. Opt for a No-Claims Discount
Many insurers offer a no-claims discount (NCD), similar to car insurance. The longer you go without making a claim, the bigger your discount.
- If possible, pay for small treatments out of pocket to preserve your no-claims status.
- Some policies allow you to use an excess to keep your NCD intact.
7. Join a Health Cashback Plan
A healthcare cashback plan is a low-cost alternative to full health insurance. These plans refund a percentage of your healthcare costs, such as GP visits, dental treatments, and optical care.
- Companies like Simplyhealth and WPA offer cashback plans for everyday health expenses.
- While they don’t provide the same protection as private medical insurance, they can be an affordable supplement.
8. Review Your Policy Annually
Health insurance needs can change over time. Reviewing your policy annually ensures you’re not paying for unnecessary coverage.
- Check whether you’re still using all the services covered by your plan.
- See if new discounts or promotions are available.
- Consider switching providers if another insurer offers better value.
Conclusion
Lowering your health insurance costs doesn’t mean giving up essential coverage. By comparing providers, adjusting excess, choosing tiered coverage, and using employer benefits, you can keep your premiums affordable while still receiving quality care. Taking the time to reassess your policy each year ensures you’re getting the best deal possible.