Tips from Martin Lewis' team to slash insurance renewal
The scathing NHS report by Lord Ara Darzi released this week has highlighted the increasing strain on the health service, with doubled A&E queues, 'normalised' year-long waitlists, and a decline in cardiovascular treatment over 14 years of a Conservative Government. This has led to a surge in Britons considering private healthcare options, reports the Mirror.
However, private healthcare is not without significant costs. For a typical family premium, which includes two middle-aged adults and two children under 10, annual costs can range from £700 to £1,800, as reported by MoneyHelper.
In light of these expenses, the team at Martin Lewis' MoneySavingExpert (MSE) have shared valuable tips for reducing private healthcare costs. One MSE follower, known as 'Tony', successfully saved an impressive £1,001, which is a 35% reduction on his private health insurance renewal quote, by employing haggling techniques.
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He expressed his thanks on X (formerly Twitter), stating: "I saved £1,001 (35%) on a private health insurance renewal quote by haggling."
While choosing the lowest insurance rate or negotiating for a better deal might seem straightforward, MSE experts claim that mastering this approach is an art form, particularly when aiming to cut down substantial bills by hundreds or even thousands of pounds. In their latest Money Tips newsletter, they acknowledged: "The NHS and its staff are true national treasures, but much as it's painful to write, the pandemic and cost of living crisis have seen it struggle - even the Prime Minister has said it's 'broken'."
"So it's unsurprising we're getting questions about medical insurance, both for getting treated privately and for covering NHS costs too."
Before you dive into the negotiation process, it's essential to select a private medical insurance policy that fits your needs.
MSE experts suggest starting with comparison websites such as MoneySupermarket and Howden Life and Health, which can help you compare different providers. These sites often offer over £100 in cashback as well.
When choosing your policy, MSE recommends asking yourself key questions: which hospitals do you need access to, what treatments are you looking for, and are there services you're willing to rely on the NHS for?
Answering these will help you pinpoint the most suitable options.
However, MSE cautions that even if the initial rate seems reasonable, it could increase over time. This is where negotiating skills may prove beneficial.
Typically, the first step is to revisit comparison sites to check for the lowest rates and see if your current insurer can match them. Additionally, experts at myTribe Insurance advise considering the removal of extras from your policy that you're unlikely to use.
This might mean opting out of travel cover or dental care, for example. They noted: "If you primarily have health insurance to protect you from severe medical conditions, you could remove some additional options to reduce your renewal premiums."
Incorporating a 'six-week NHS option' can also reduce the cost. This option entails that if treatment is available on the NHS within six weeks, you would choose this instead of private care.
Nonetheless, specialists caution that this choice might sometimes defeat the purpose of having private healthcare. "This isn't something we tend to recommend too frequently," they remarked. "However, it is a good way to reduce the cost of a policy."