"The number of consultants in a network can vary from 4k to 19.5k, and some are more geographically restricted."
- Kyle Godden, Managing Director at Clarity Health Insurance
The UK is transitioning to a three-tier health system as most Private Medical Insurance (PMI) providers now offer a guided network option to make policies more affordable, reports Clarity Health Insurance. These guided networks are offered alongside full PMI policies and the NHS.
PMI policies with a guided network (or ‘guided options’) restrict the list of consultants and hospitals available for care. As a result, these policies can be as much as 53% cheaper than standard all-market options.
Clarity Health Insurance warns that guided networks differ significantly amongst providers. These options can add complexity to the market, requiring additional training for advisers. In the past twelve months, 61% of new policies sold via Clarity Health Insurance included the guided network option, demonstrating consumer demand.
“We’re witnessing the evolution of the UK health market into a three-tier health system. With pressures on the NHS, there is a rising demand for private healthcare from a broader audience. Insurers have responded by offering more restricted products to lower costs and attract newer customer demographics,” explained Kyle Godden, Managing Director at Clarity Health Insurance.
He said: “PMI policies with a guided network are hugely popular and for good reason. However, once you scratch below the surface, the difference in quality between insurers becomes more apparent. This adds further complexity to the industry and underscores the need for specialist advice.
“Insurers aren’t always required to inform customers about changes or restrictions to their networks, even if these occur mid-term. As demand for guided network policies continues to grow, we urge insurers to prioritise sharing updates so brokers can provide the best advice to their customers,” Kyle concluded.
According to the latest data from the Private Healthcare Information Network (PHIN), there were 898k admissions to UK private hospitals in 2023 – this is 7% higher than in 2022. Admissions funded by PMI policies were at record levels (612k), going above pre-Pandemic figures for the first time. Notably, in the final three months of 2023, 161k private hospital admissions were funded by PMI.
READ MORE: Self-funded private hospital admissions spike in 2023
Kyle believes PMI has begun to “shed its reputation as a luxury exclusive to just the wealthy and is now more widely regarded as an essential protection product for people from all walks of life. PMI allows you to take charge of your health, offering flexibility in selecting care providers, avoiding lengthy NHS wait times, and accessing treatments not readily available through public healthcare.”
