How to Control the Cost of Private Medical Insurance: A Guide to Long-Term Sustainability.

Cost is often one of the biggest concerns when considering private medical insurance, with many viewing private healthcare as an expensive luxury. However, PMI can be a valuable and accessible employee benefit, particularly when provided through the workplace.

Research from Epassi UK found that 25% of employees surveyed said PMI was the most important benefit they wanted from their reward package, while 43% of employers currently offer it. As more businesses introduce PMI, the question becomes not just “Can we afford it?”, but “How can we keep it sustainable in the long term?”

Why does PMI increase year after year?

One of the biggest challenges businesses face with private medical insurance is that premiums can increase at renewal. This doesn’t necessarily mean an insurer is simply charging more for the same cover. There are several factors that can influence the cost of a PMI policy, including the age, location, medical inflation, changes in healthcare costs and the claims history of the scheme.

Medical inflation is particularly important. The cost of private consultations, diagnostics, procedures and treatments can increase over time, which can feed through into insurance premiums. If a business has experienced a higher level or cost of claims, this can influence the insurer’s assessment of the scheme at renewal.

This is why long-term cost control shouldn’t simply mean looking for the cheapest quote each year. Businesses need to understand what is driving their premium, whether their current level of cover remains appropriate and what options are available to manage costs without compromising the value of the benefit for employees.

Are you getting the most from your policy?

Cost control isn’t only about reducing the amount you pay for your PMI. It’s also about making sure you’re getting the full value from the benefits you’re already paying for. If employees aren’t aware of the services available to them, a business could be paying for valuable healthcare support that isn’t being fully utilised.

This is where employee engagement becomes important. Making sure employees understand how to access their PMI, what is included and when they can use different services can help them make better use of the cover available to them.

It’s also worth considering whether additional benefits, such as a health cash plan, could complement your PMI. A cash plan can help cover everyday healthcare costs such as dental, optical and other routine treatments, while PMI is generally designed to provide access to private treatment for eligible acute medical conditions. Looking at how these benefits work alongside each other can help businesses build a more rounded healthcare package without simply adding unnecessary costs.

How can Cransford help with long-term cost control?

At Cransford, we believe managing the cost of private healthcare should be an ongoing process, rather than something businesses only think about when their renewal arrives. As a specialist private medical insurance broker, we help businesses review their cover, understand their options and make informed decisions about their healthcare policy year after year.

1. Market wide policy reviews

We don’t simply assume that staying with your current insurer is the best option. We can review the wider market to see whether there are more competitive or suitable options available based on your business, workforce and requirements. A market review doesn’t always mean changing provider. A lot of the time your existing insurer may still offer the best option, which is great for us it means we can work with the provider to negotiate the price. The important thing is having the opportunity to compare and make an informed decision rather than automatically renewing.

2. We manage your renewal for you

Renewal shouldn’t be something you have to spend time managing yourself. At Cransford, our dedicated accounts team handles the renewal process, liaising with insurers, reviewing your options and helping identify potential changes that could help manage costs before your policy renews. We don’t just let your policy automatically renew. Our team takes care of the process, giving you confidence that your cover has been properly reviewed and that you’re not simply accepting the renewal price without exploring your options.

3. Specialist private medical insurance expertise

At Cransford, we specialise solely in health insurance. Our focus is private medical insurance, meaning our team works specifically within the healthcare market and understands the insurers, products and factors that can influence the cost of cover. If you already have a broker that handles your other insurance like life insurance or business insurance, we can work alongside a broker on your healthcare. Making it an easy option for you!

Ultimately, our role isn’t just to find you a policy. It’s to help you manage, review and get value from your private healthcare cover year after year.

Looking for health insurance long term cost control?

Get in touch with our team for a free, no obligation quote. We’ll find you the right cover at the right price with local expertise you can trust.

Call us: 028 9073 5207

Email: [email protected]