Martin's masterclass on how to...
Halve private medical insurance costs
 'Was paying £175/mth – got it to £96/mth' - £950/yr cheaper

We should be proud of the NHS. It's one of our nation's jewels. And like millions over its 70yr life, I'm very thankful to its wonderful staff, for looking after me and my family during horrid moments. The medical care given to all, regardless of means, is the very definition of life-saving.

Many people, though, make a legitimate choice to pay for private medical insurance (PMI) - a luxury/convenience product that gives sometimes speedier, more flexible private treatments in hotel-style comfort. In my Twitter poll of c. 6,000 people, 23% had PMI.

It works best for planned consultations and treatments - be it hip replacements, cataracts or ear conditions. Yet in emergencies, in my view, the NHS is unbeatable, as its large hospitals tend to be better staffed around the clock.

Whether you've been considering it or want to test how your current policy stacks up, there's full help in our Cheap PMI guide. Here's my summary:

1. Quickly compare to benchmark prices. PMI isn't cheap. The cost can be up there with energy bills, especially as you get older. So getting it right can mean substantial savings, eg, 'was paying £175/mth – got it down to £96/mth by comparing and got a similar level of cover' - that's £950/yr cheaper.

To see the lie of the land, compare via Assured Futures* and CompareTM. They include all the big players but if you're aged 50+, try Saga*. If you've more time, check MoneySupermarket* and Gocompare too, in case they've offers.

2. Existing policy? Huge savings may be possible, but be careful. PMI prices usually rise each year, both because as you age, you're a higher risk, and due to the usual insurance 'apathy charge' - in other words, if you don't change, your provider knows it can get away with pumping costs up.

If a comparison indicates you're paying over the odds, take that price to your existing provider and haggle to see if it'll match it. It may even switch you to another of its own brands at a much lower cost (do let us know if that happens). If not, consider leaving, and politely tell it so, as that may then prompt it to match your price.
   
However, if you've had treatment via your policy in the last 5-7 years, while your existing insurer will usually cover you for reoccurrences, your new one is likely to exclude it as a pre-existing condition if it reoccurs (within 2-7 years depending on what it is). If that's a concern, sadly you may effectively be locked in to your current provider. 

3. Does your employer offer cheap PMI as a staff perk? This is great and may be far cheaper than owt else.

The only concern, though, is if you need treatment, claim, and then later decide to leave the firm, will you be able to continue with the same policy once you've left? If not, you may then be stuck without being able to get a new insurer to cover that pre-existing condition. Do check. 

4. Pick the right PMI cover. There are a lot of choices. The comparison sites should give an overview. Read more on this in picking a PMI policy, but key things to consider are...
 
- Which hospitals can you use? A more extensive choice costs more, so once you home in on a policy, check its hospital list and options.
- What treatments do you want to cover? Options can include improved levels of cover for, say, cancer and mental health. Consider what you'd be happy to use the NHS for. Read the cover limits carefully.
- Consultant limits. If you have a specific consultant you like to see, if they're not on the approved list they may not be covered. With pricey consultants over the normal limit, you may need to pay the difference.
- Full medical underwriting (FMU) vs moratorium cover. With FMU you disclose your full medical history at sign-up (you may need a check-up). Moratorium doesn't need that, but if you claim for a condition within the first 2 years, you'll often need to prove you haven't suffered from it before, which can slow things down. (It may be longer than 2 years for some conditions and providers.) 

6. Can you self-insure to cut costs? Instead of paying an insurer a monthly amount, you put that cash in top savings to use if you want some private treatments, or spend if not needed. Alternatively, get a very high-excess policy (eg, £1,000 per claim) so there's cover for a serious issue, but self-insure with the saving for lesser treatments. 

7. For full help and guidance, use a broker. If you're confused, need help, or have conditions that make things difficult, you can get assistance from a broker via the snappily titled Association of Medical Insurers and Intermediaries.

It can answer questions about cover, particular insurers' records, rules and more, which can help. Most brokers are free to you, because they take commission from the insurers if you get a policy. Do check how and if they'll charge before you get the advice.

8. Healthcare cash plans are cheaper than PMI and cover NHS treatments too. Cash plans are very different policies from PMI and cost as little as £8/mth. If you have one, and then shell out for NHS or private treatment, you then send them your receipts and they give you the cash back up to an annual limit (the more you pay, the bigger the limit), eg, £150 on dental treatments.

Things commonly covered include dental (eg, fillings), optical (eg, new glasses), chiropody and visits to consultants. Yet it can even be as far out as acupuncture, osteopathy and massages. Don't bother though if you're the type of person who'll forget to send the receipts in.

For many people, especially those who wear glasses and contacts, you can reclaim far more than you pay out each year, in some cases, the gain can be £100s. For more help, see best-buy healthcare cash plans.

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