Protect Your Health For £2.25 A Week

It's still free, and still going at 60 -- but people are deserting the NHS in favour of cheap private medical plans.

Over six decades, the National Health Service has become as integral to our idea of `Britishness' as drinking tea, eating fish and chips and, erm, losing penalty shoot outs. 

If it were a person, however, the NHS would now be on the wind-down to retirement. And the system is not in perfect health. In the past few weeks alone, there have been concerns in the press about hospital cleanliness, the availability of certain cancer treatments and hospital waiting lists.

PMI: The NHS Alternative?

In light of all this, perhaps it's not surprising that the number of Brits taking out private medical insurance (PMI) has started to swell in recent years.

According to the Association of British Insurers (ABI), the number of people covered by PMI in 2007 broke the 7 million barrier.

Individuals have sought insurance privately, and businesses have also wised up to the demand for PMI. Many companies now offer private health care as a benefit for employees.

Bupa suggests this trend will continue in 2008. It reports that there has been a 20% increase in sales in the first three months of this year -- despite widespread belt-tightening.

The Price Of PMI

If you're concerned that you might not get the care you need from your local hospital, PMI might buy you some peace of mind.

While you should be able to get the treatments you need on the NHS, you aren't guaranteed to get them straightaway -- PMI could cut down the time you have to wait. There are also some drugs the NHS won't approve, which are available to those who opt for private care.

The question is, what could private care cost you?

Believe it or not, the price of PMI can start from around £12 per month (£2.77 a week) -- though £30 per month might be a more reasonable estimate, depending upon your age and health.

There are also plans available that reward you for looking after yourself by lowering your premiums. PruHealth's Vitality scheme, for example, encourages members to join a gym and give up smoking.

You can find the best possible deal on PMI by searching for a policy through a broker such as The Motley Fool Insurance Service.

Lower-Cost Options: Cash And Co-Payment Plans

If you're looking for a cheaper alternative to PMI, you might be interested in a health cash plan.

These work by paying customers a lump sum (up to a maximum limit) when they need certain care -- such as dental work, physiotherapy or eye treatment.

The key advantage of cash plans is their low price.

HSA's Level 1 Cash Plan costs just £2.25 per week -- and covers up to £354 worth of dental, optical and other treatments per year.

However, cash plans generally won't completely cover operations or hospital treatment -- instead, they might give you a daily `benefit' which you'll have to top up if you want private care. This could prove costly, or mean that you decide to use the NHS after all, should you need serious medical attention.

Co-payment plans are less common than both cash plans and PMI -- though several insurers, such as Exeter Friendly Society, now offer them.

Under a co-payment plan, your insurer agrees to pay only a certain percentage of any claim you make -- while you foot the bill for the rest. The more you're prepared to pay annually, the lower your premiums will be.

A Matter Of Faith?

In the end, whether or not you choose to take out some form of private medical cover will depend on how much confidence you have in the NHS.

Thanks to what some politicians call `the NHS post-code lottery', some people may have more than others.

However, paying for private cover isn't a simple step to safeguarding your health. As my Foolish friend Neil Faulkner reported last month, no PMI policy is likely to cover you for something they deem to be a `pre-existing condition'.

In addition, there are other things most policies won't cover -- and there can be problems with obtaining palliative care (treatment for terminal illness) through PMI.

I must admit, though, I'm grateful that I have the benefit of private health cover through my job here at The Fool. It's good to know that, should anything serious befall me, I'll have the option of getting it sorted privately if I need to.

As always, I'd love to know what other Fools think. Are you happy to rely on the NHS 60 years on? Or do you think the cost of PMI is a small price to pay for peace of mind?

More: Private Medical Insurance: Is It Worth It? | Health Policies: The Costs, Cover And Cancer Exclusions | Where To Find Cheap Health Insurance If You're Over 50