Health Insurance in The UK: Same and Different

As Obama prepares to take office amid a raging recession and America’s demands for more accessible and affordable health care, the London Daily Mail has this ad: “Save hundreds of pounds on health bills.” The paper offers to pay for a year of private health “cover” for five lucky readers if they call in before January 15th. The value of the insurance is said to be about 250 pounds a month, more than $380.00, and the contest says the insurance is subject to availability and the terms and conditions of the health care provider.
Britain’s National Health Service is not looked at fondly by its citizens, but as rather a last resort. In the boom years, many people had started buying PMI (private medical insurance). Now, with the economy in the tank, they’re spoiled, so the Daily Mail ran a this long article on how to have your cake and eat it too:

1. Remember that private health insurance is a luxury not a necessity. Most people buy it because it allows immediate treatment of non-urgent problems. But it doesn’t cover GP routine checkups.
2. Don’t buy insurance; pay privately as you go,or start a special savings account. Banks in the UK give higher interest on HSAs.
3. Check to see if you have employer-based coverage. Some employers do provide it.
4. Comparison shop. PMI plans are compared at moneysupermarket.com, and rates for a single person range from 13 pounds to 249 pounds per month.
5. Downgrade. This seems to be like catastrophic insurance — covers only things for which treatment is not available from NHS within a specified period.
6. Exclude mental health, certain tests and scans, as well as complementary therapies.
7. Accept fewer hospital choices
8. Take a no claims discount (which can bite you in the butt if you DO have a claim). It’s like promising not to use the insurance.
9. Take a shared responsibility policy, in which you are incentivized to keep costs down.
10. Pay premiums all at once.
11. If you are self-employed, “club” together and get group coverage
12. Increase your deductible.
13. Stay healthy.
14. Opt for a health care cash plan, which pays a fixed amount for certain services, after which you take over.
15. Shop for new insurance every year.

It’s interesting how many of these tips seem familiar to us in the US. However, there is ONE BIG DIFFERENCE: PMI is a choice for Britons, not a necessity. If they can’t afford it, they are not without access to health care.

I was impressed with how thorough the suggestions were for the Daily Mail’s readers. Most of us in America, who depend on private health insurance, don’t know all these angles. We need to become more educated immediately, no matter what Obama does.

And one more thing: the Daily Mail has a free month’s supply of antioxidants for you, too. That paper will go to any lengths to keep its readers:-)

Tagged as: Health care, health insurance, insurance, National Health Service