Cash Plans match PMI for average number of benefits

Hospital cash plans match standard Private Medical Insurance (PMI) policies for the number of benefits offered and beat budget Private Medical Insurance policies, research for Benenden Healthcare shows. Its inaugural PMI index shows the average number of benefits offered is 21 on both standard PMI and hospital cash plans.

However budget PMI policies offer on average 16 benefits some offering just four benefits while the minimum number of benefits offered by hospital cash plans is nine.

Benenden Healthcare, the not-for-profit friendly society which offers its own cash plans to members, commissioned independent financial research company Defaqto to analyse the PMI and hospital cash plans market for its PMI index and plans to monitor the market at six-monthly intervals.

It found there are approaching 50 different benefits offered by both hospital cash plans and PMI policies but that no individual policy offers all of them. The Benenden PMI index analysed 93 PMI policies from 25 providers and 282 cash plans from 33 providers.

PMI focuses on a core of costs associated with in-patient and out-patient treatments while cash plans focused on a core of contributions to costs of routine dental and optical treatment, analysis showed. All PMI policies offered cover for in-patient and out-patient hospital charges while 99 per cent also covered physiotherapy; diagnostic tests; and consultant fees. Around 98 per cent of cash plans offered optical benefits and 97 per cent dental fees.

However some standard PMI policies offer normal maternity costs and access to a herbalist while some cash plans offer dietician benefits and family planning benefits. The table below shows the range of benefits offered on average by standard and budget PMI plans and hospital cash plans.

Jakki Stubbington of Benenden Healthcare said: ìThe UK health insurance market is growing in importance and consumers need a guide as to what is and is not available. That is why we have launched our index and plan to continue monitoring the market.î

ìIt is striking that there is such a range of benefits offered by different providers but that cash plans do on the whole offer as many benefits as PMI.

ìAs our report says, cash plans are one of the financial services industryís best kept secrets. They are a low-cost solution geared towards the day to day health expenses that we all have to meet. And best of all they pay out.î

The Benenden Healthcare PMI index shows changes in the benefits offered by PMI policies and cash plans with both products moving into each otherís areas.

Around 54 per cent of PMI policies offer routine optical cover ñ a typical cash plan benefit ñ while 10 per cent of cash plans offer cover for extended hospital stays and six per cent pay out for hospital out-patients.

PMI product developments include offering a menu of benefits to suit different budgets and policies designed to cover specific conditions such as BUPAís Healthcare Select Heart and Cancer Plan as the industry adapts to cut costs. Other developments include offering helplines and counselling; health screening and lifestyle incentives aimed at prevention rather than paying out for conditions.

Cash plans are designed more to complement the NHS rather than to offer an alternative and focus on core preventative benefits and others aimed at aiding recovery such as convalescence and recuperation. And because benefits are capped, premiums are significantly lower than for PMI.

The Benenden Healthcare Society, which last year celebrated its centenary year offers membership to teachers and education workers, Post Office staff, civil servants, BT and local government authoritiesí employees, charity workers and their families. Membership costs just 1.10 per week. Additionally, organisations operating in these areas can join Benendenís corporate plan and offer healthcare as a benefit to staff for just 57.20 per person, per year.

The Society can provide the following benefits as part of its core services. (For an additional cost, it has a cash plan that is available to members only).

Diagnostic consultations
With a local NHS registered consultant, up to 1000 for diagnostic tests, minor treatment and follow-up consultations if required.

Medical treatment and surgery
Last year, members received medical treatment for:

o Tuberculosis
o Chest conditions such as asthma and obstructive airways disease
o Hypertension
o Ischaemic heart disease
o Neuritis (inflammation of the nerves)
o Skin conditions including psoriasis and eczema

A wide range of surgical procedures is available at The Societyís own Benenden Hospital or selected regional surgical centres, including cataracts, varicose veins, hernias, tonsils, adenoids, bowel problems, prostate problems, gallstones, sinuses and gynaecological problems

Cancer care support
Supplementary support to complement the NHS and social services departments.

Health Concern Advice Line
Provides information about organisations and helplines that can provide support, care or expert advice on different healthcare issues.

24-hour GP Telephone Consultation Line
Allows members access to a doctor outside normal surgery hours all-year round. Members can make unlimited calls and there is no limit on consultation times.

Long-term care advisory service
Funds assistance in finding suitable long-term care arrangements for members and their relatives

Discounts at Health Clubs and on Health Screening
Discounted access to a wide range of sports and health clubs and quality health screening is available to all
Members

Physiotherapy
Help towards the cost of physiotherapy as recommended by a GP or consultant.

To find out more about joining the Benenden Healthcare Society call: 0845 052 5731*

* Calls cost a maximum of 4p per minute for BT customers. The price of calls from non-BT lines will vary. Calls may be recorded