Although the NHS offered an extraordinary service during the pandemic, the challenges in caring for patients unwell with Covid-19 has led to elective care waiting lists climbing to the highest levels since records began[.
And this isn’t a small problem. According to data gathered by the Health Foundation, six million fewer patients received a complete round of elective care between January 2020 and July 2021 than in an ordinary year.
Naturally, the backlogs faced by the NHS highlight the value of having health insurance. A recent report from the Institute of Public Policy Research found that one in six people in the UK are now prepared to go private instead of waiting for treatment.
This marks an opportunity for advisers to speak to clients about the benefits of health insurance.
But they also need to be aware that some clients will be more affected than others. For example, older clients, particularly the over 65s, depend on elective care more than any other age group.
In 2017, there were 117 elective admissions per 1,000 in their 70s, compared to only 24 for every 1000 elective admissions for people in their 30s.
Not only are older clients more likely to choose or need elective treatment, but they are also more affected by long waiting times.
The older people’s charity, Independent Age, reported that one in three over 65s are waiting over 12 months for life-changing operations, while 71% of respondents endured pain during their wait for care, with over half experiencing discomfort every day.
The statistics are stark, but this is where advisers can make all the difference. Engaging in health insurance conversations with clients and highlighting the benefits of having a policy in place, such as access to private facilities, shorter waiting times and financial security to help manage medical costs, can bring these individuals peace of mind.
Granted, some older clients may hesitate to take out a plan, especially considering the rising cost of living.
However, advisers can be confident that the flat costs of insurance provide a robust and cost-effective solution for clients.
For example, imagine an older individual who urgently needs a pacemaker but has been waiting several months due to Covid-19 cancelling or postponing elective surgeries. In this case, she might be tempted to cut her losses and finance a one-off elective surgery from a private provider. Why not? She’s waited long enough. Perhaps the high fees are worth it.
However, the costs of elective surgery can often be exceedingly high. A client looking to have a pacemaker fitted privately in the South West can expect to pay over £10,000, a prohibitive cost if paid for from savings.
In contrast, health insurance premiums for over 65s tend to average around £114 per month with The Exeter, making health insurance a far more manageable way to ensure you can access and pay for the medical services you need.
Indeed, the high upfront cost of paying for private healthcare without insurance can put serious financial pressure on people who feel they have no other alternative and may lead to some resorting to hasty solutions, such as cashing in their investments early or depleting their retirement savings.
In addition, a self-pay solution may only cover the upfront costs of the operation. If a patient needs aftercare, such as an extensive programme of physical therapy, it is possible that they will need to find a way to fund this too. Once again, the financial burden will fall upon their shoulders.
It doesn’t have to be like this. As mentioned, in the long run, taking out a health insurance policy is far easier to financially manage than a huge one-off payment. Better yet, health insurance is comprehensive, meaning an older client can rest assured knowing their pre-diagnostic, treatment and post-treatment costs are included in their insurance policy.
Advisers may also want to discuss the wider benefits that come with many health insurance policies, and which can often exceed the value of the policy itself.
Access to remote GP services and medical consultations can spot and treat minor issues before they develop to the point of needing more substantial – and if privately addressed, expensive – treatment.
Clients also have access to a range of services to treat physical and mental illness, including physiotherapy and counselling, meaning they can benefit from comprehensive support should they need it.
At a time when climbing NHS waiting times are prompting many to consider private healthcare options, it’s increasingly important for advisers to have the conversation with their clients, in particular older clients.
The right health insurance plan can help to provide this age group with vital, and quick, access to the medical services they need, while also helping to manage finances and provide peace of mind. The impact of the pandemic on our health service is likely to be long-lasting, making conversations about insurance more essential than ever.
Karen Woodley is the head of sales at The Exeter
