Employers are playing an increasingly important role in the private healthcare market, with seven out of 10 treatments funded through PMI policies in the second quarter of 2024.
Over this period almost 100,000 more patients were funded through PMI policies when compared to self-pay options, according to data from the Private Healthcare Information Network (PHIN). Many of these policies are through company healthcare schemes.
Analysis of this PHIN data by Broadstone shows that there were a record number of private healthcare treatments funded through PMI in the first half of this year, with a total of 333,000 admissions.
This is up from 8 per cent from the first half of 2023 and up 15 per cent on the first half of 2019, before Covid. Broadstone says that the number of insured admissions is currently at 111 per cent of pre-pandemic levels, as the National Health struggles with increasing waiting lists and backlogs for treatment.
Broadstone says that the figures show that self-pay treatments re-bounded rapidly following Covid, as patients dipped into pandemic savings to fund access to treatment, but have since plateaued meaning the rapid growth in the private health market is now being driven by insurance solutions.
Broadstone head of health and protection Brett Hill says: “Corporate-funded medical insurance continues to be the key driver behind the private health sector’s remarkable growth in recent years.
“As the NHS grapples with a huge backlog in patients, it is struggling to meet the healthcare needs of the UK population. Private healthcare, therefore, is increasingly becoming the go-to option for corporates seeking timely screenings, diagnoses, and treatments for their workforce to avoid absenteeism and long-term inactivity.
“However, this surge in PMI coverage has been accompanied with an increase in claims volumes which, coupled with the rising complexity of medical conditions, has led to higher claim costs for insurers, with employers now feeling the impact via escalating PMI premiums.
“Preventative programs that can spot issues earlier can help bring down the cost of healthcare packages by minimising treatments for more complex, expensive health conditions.”