Private medical insurance PMI (private health insurance PHI) - by independent financial adviser John Bramwell

Private Medical Insurance (PMI)

Why is PMI needed?

PMI pays for medical treatment outside the NHS. There are many reasons why it may be preferable not to use the NHS. These include reducing waiting times, more comfortable hospital accommodation, access to better consultants and specialists, and a perception that private hospitals are cleaner.

Quicker treatment for non-urgent conditions, such as joint replacement and injuries requiring physiotherapy, is often considered to be the most important reason for PMI, as it can reduce the pain suffered, speed up total recovery and allow a more rapid return to work.

PMI is therefore seen as a valuable part of an employee benefits package, by both employers and employees.

What is covered?

There is a wide range of cover available. The most comprehensive policies cover all costs of treatment, both in-patient and out-patient, although there is often a maximum. These costs include those from the hospital for operations and nursing care, consultants, blood tests and scans, clinics, etc.

The costs of lower priced policies are reduced by restricting some of the cover, for example by limiting the choice of hospital accommodation, restricting to out-patient use only or by requiring the member to use the NHS if treatment can be undertaken fairly quickly (eg. within six weeks of diagnosis).