Health Insurance Premiums Increasing
Discussion
I wasn’t sure whether to post this here on in the health section so fine if the mods want to move it.
Mrs BC and I were insured with WPA. They were very competetive when we started but the renewal came in with a 12% premium increase even though we hadn’t claimed. Last year we changed to Aviva who were cheaper then guess what, the renewal just came in at plus 11% even though we haven’t claimed.
I called Aviva and they said ‘medical inflation is over 7%, the rest is because you’re older and increased insurance tax’. The tax bit must be wrong as the policy started in June last year after the tax increase.
To avoid over paying we move our car breakdown cover between AA and RAC annually so we always get the new customer discount. I’m not comfortable with doing this with health insurance though.
Any ideas?
Mrs BC and I were insured with WPA. They were very competetive when we started but the renewal came in with a 12% premium increase even though we hadn’t claimed. Last year we changed to Aviva who were cheaper then guess what, the renewal just came in at plus 11% even though we haven’t claimed.
I called Aviva and they said ‘medical inflation is over 7%, the rest is because you’re older and increased insurance tax’. The tax bit must be wrong as the policy started in June last year after the tax increase.
To avoid over paying we move our car breakdown cover between AA and RAC annually so we always get the new customer discount. I’m not comfortable with doing this with health insurance though.
Any ideas?
I was going to post about this today. More about a warning to those who think that downgrading the NHS and having more of us on private insurance a good idea.
My ex-wife and her 2 business partners took out medical insurance in 2011. It was about £120 each a month.
In 2012 she got diagnosed with an aggressive form of breast cancer. The private system was excellent. No waiting, nice hospitals, one to one with the consultant in charge and 24 hour phone help.
6 years later she is still here but still battling thanks to drugs that according to our GP she would not have had access to within the NHS.
But........
The monthly premiums have been increasing. They are now currently £800 a month. She has no option but to stay with this insurance company or throw her all in with the NHS.
She is now uninsurable by any other company and I'm sure that the rapidly increasing premiums mean that her current insurance company don't want her either.
Just a sobering thought.
My ex-wife and her 2 business partners took out medical insurance in 2011. It was about £120 each a month.
In 2012 she got diagnosed with an aggressive form of breast cancer. The private system was excellent. No waiting, nice hospitals, one to one with the consultant in charge and 24 hour phone help.
6 years later she is still here but still battling thanks to drugs that according to our GP she would not have had access to within the NHS.
But........
The monthly premiums have been increasing. They are now currently £800 a month. She has no option but to stay with this insurance company or throw her all in with the NHS.
She is now uninsurable by any other company and I'm sure that the rapidly increasing premiums mean that her current insurance company don't want her either.
Just a sobering thought.
Firstly, Croyde I’m sorry to hear that about your Wife, it must of been horrific to go through.
We are protection brokers so happy to ring it around for you to find out if they are blowing smoke. We only use 3 providers but at least you’ll know if it’s fair or not.
Ping me the quote over if you want us to check it out?
We are protection brokers so happy to ring it around for you to find out if they are blowing smoke. We only use 3 providers but at least you’ll know if it’s fair or not.
Ping me the quote over if you want us to check it out?
Countdown said:
@Croyde - not meaning to be harsh but isn’t that how insurance is supposed to work?
I.e. if you are more likely to claim and/or the costs of treatment to the InsCo are likely to be high then your premium is likely to increase?
This. It's a business, not a charity. Premiums are related to risk. I.e. if you are more likely to claim and/or the costs of treatment to the InsCo are likely to be high then your premium is likely to increase?
And is this not the perfect anecdote for favour of our NHS. I'd imagine the companies promised the earth at each renewal. Yet your wife gets ill and is now having to pay £800 a month! Who can afford that?
My wife who is also being treated for breast cancer through the nhs right now is very lucky as we live a mile from one of Britains leading cancer hospitals. Her treatment is cutting edge and as good as anyone in private receives. We know this unfortunately as breast cancer is common, we know others going through the same who are private. The common theme is they're told they're recieving treatment unavailable on nhs. Yet they're not, and they're waiting longer for it.
The whole thing breaks my heart.
My wife who is also being treated for breast cancer through the nhs right now is very lucky as we live a mile from one of Britains leading cancer hospitals. Her treatment is cutting edge and as good as anyone in private receives. We know this unfortunately as breast cancer is common, we know others going through the same who are private. The common theme is they're told they're recieving treatment unavailable on nhs. Yet they're not, and they're waiting longer for it.
The whole thing breaks my heart.
bad company said:
TwigtheWonderkid said:
This. It's a business, not a charity. Premiums are related to risk.
So why do they increase the premiums seemingly based on loyalty rather than attracting new clients?liam1986 said:
bad company said:
TwigtheWonderkid said:
This. It's a business, not a charity. Premiums are related to risk.
So why do they increase the premiums seemingly based on loyalty rather than attracting new clients?What’s the point of attracting new customers if it’s at the expense of existing clients?
bad company said:
Over thinking, WTF is that?????
What’s the point of attracting new customers if it’s at the expense of existing clients?
Over thinking = the first and most obvious answer is correct. Don't waste your time looking for other factors effecting the outcome. What’s the point of attracting new customers if it’s at the expense of existing clients?
Occam's razor should be applied here.
Isn't that just called 'burn rate' or something like that. As long as it's +ve the business makes money.
bad company said:
Over thinking, WTF is that?????
What’s the point of attracting new customers if it’s at the expense of existing clients?
Insurance companies rely on apathy from their existing customers when setting premiums for them, whereas in order to attract new customers they need to be price competitive.What’s the point of attracting new customers if it’s at the expense of existing clients?
Countdown said:
Insurance companies rely on apathy from their existing customers when setting premiums for them, whereas in order to attract new customers they need to be price competitive.
That’s right. For that reason I check and usually change on renewal for home, car and breakdown insurance etc.Health insurance is a bit different as it’s bound to get dearer as we get older and it would be good to have continuity with the same company but it looks like I need to make a change.
bad company said:
I wasn’t sure whether to post this here on in the health section so fine if the mods want to move it.
Mrs BC and I were insured with WPA. They were very competetive when we started but the renewal came in with a 12% premium increase even though we hadn’t claimed. Last year we changed to Aviva who were cheaper then guess what, the renewal just came in at plus 11% even though we haven’t claimed.
I called Aviva and they said ‘medical inflation is over 7%, the rest is because you’re older and increased insurance tax’. The tax bit must be wrong as the policy started in June last year after the tax increase.
To avoid over paying we move our car breakdown cover between AA and RAC annually so we always get the new customer discount. I’m not comfortable with doing this with health insurance though.
Any ideas?
Hi BC - did you have any joy with this query and your renewal? I am an independent specialist health insurance intermediary & i would be happy to review or offer advice. Mrs BC and I were insured with WPA. They were very competetive when we started but the renewal came in with a 12% premium increase even though we hadn’t claimed. Last year we changed to Aviva who were cheaper then guess what, the renewal just came in at plus 11% even though we haven’t claimed.
I called Aviva and they said ‘medical inflation is over 7%, the rest is because you’re older and increased insurance tax’. The tax bit must be wrong as the policy started in June last year after the tax increase.
To avoid over paying we move our car breakdown cover between AA and RAC annually so we always get the new customer discount. I’m not comfortable with doing this with health insurance though.
Any ideas?
In any case happy to provide some background for you;
In the main with PMI one cannot avoid what the insurer's term "Medical inflation" it is industry wide terminology which i detest and is misleading as it has nothing to do with national inflation. Better to call it base rate & age increase. As others have cited as we age there is a higher chance of something going wrong and therefore claims so the insurers bet against this with higher rates year on year. The insurer's base rates are priced against their portfolio of existing business, perceived policy performance, appetite for risk based on your age and region among other factors. So their algorithms churn out the prices and even if one hasn't made a claim you will still usually see an increase.
An intermediary in this case can fight your corner for you with the insurer - check markets and negotiate favorable terms on your behalf in many instances. It costs nothing to appoint an intermediary - we are reimbursed by the insurer via commission and most contracts have the broker commission built into the premium whether you are direct or via a broker.
When choosing an insurer (and i am assuming that your policy is a personal product and not a business product) many of the mainstream insurers, Aviva, AXA PPP, Vitality etc use a no claims discount platform with their products - much the same as motor insurance. This model is great when one is not claiming, however if a claim is made (no matter what for) the NCD is eroded by around 3 tiers which can equate to up to 15%. What this means is that your personal premium at renewal can be subject to not only "medical inflation / age" increase but also the erosion of ncd can be added on top, quickly rendering a policy somewhat unsustainable in many cases.
There are insurers in the market who do not operate an NCD platform and instead price on a community rated model, basing their rates across their entire book of business and thus spreading the risk much further. In practice this can translate to more competitive premiums for longer and one is not penalized if they make a claim by way of NCD erosion.
I digress - anyway i would always recommend speaking with an intermediary to navigate the markets and the schematics of how a particular policy can work for you in the long term.
Happy to help any fellow Pistonheaders!
Regards, Marc
I'm simply glad that my ex employer has company sponsored health insurance for their retired employees and their family at Company cost. It has been modestly increasing since I retired, not every year though. I am liable for the tax on the company premium as a BIK.
I've never understood why I should pay the tax on the wife's share of the premium though, I've always thought that she should be liable for the tax on her portion, not me, but HMRC/tax legislation disagree.
R.
I've never understood why I should pay the tax on the wife's share of the premium though, I've always thought that she should be liable for the tax on her portion, not me, but HMRC/tax legislation disagree.
R.
I'm simply glad that my ex employer has company sponsored health insurance for their retired employees and their family at Company cost. It has been modestly increasing since I retired, not every year though. I am liable for the tax on the company premium as a BIK.
I've never understood why I should pay the tax on the wife's share of the premium though, I've always thought that she should be liable for the tax on her portion, not me, but HMRC/tax legislation disagree.
R.
I've never understood why I should pay the tax on the wife's share of the premium though, I've always thought that she should be liable for the tax on her portion, not me, but HMRC/tax legislation disagree.
R.
bad company said:
Thanks Marc
I have some quotes to consider now from a couple of brokers.
But be careful- if your wife is still undergoing cancer treatment, no insurer will take her or if they do will exclude cancer treatment. Best stay with your existing insurer at least for your wife. You however could probably save money by switching I have some quotes to consider now from a couple of brokers.
craig1912 said:
bad company said:
Thanks Marc
I have some quotes to consider now from a couple of brokers.
But be careful- if your wife is still undergoing cancer treatment, no insurer will take her or if they do will exclude cancer treatment. Best stay with your existing insurer at least for your wife. You however could probably save money by switching I have some quotes to consider now from a couple of brokers.
bad company said:
craig1912 said:
bad company said:
Thanks Marc
I have some quotes to consider now from a couple of brokers.
But be careful- if your wife is still undergoing cancer treatment, no insurer will take her or if they do will exclude cancer treatment. Best stay with your existing insurer at least for your wife. You however could probably save money by switching I have some quotes to consider now from a couple of brokers.
Best
Gassing Station | Finance | Top of Page | What's New | My Stuff