Last year the private health insurance industry saved the NHS an estimated £2.4 billion, new figures have shown.
In 2010, private health insurers paid out a total £2.8 billion in claims on diagnosis, treatment and aftercare. By our estimate at ActiveQuote, 82% of these claims would otherwise have had to be funded by the National Health Service.
In addition, with the NHS expected to cut £20 billion from its budget in the next four years, the PMI (private medical insurance) sector could become an even greater financial resource in the future.
If just 5% more people took out a health insurance policy over the next twelve months, the NHS could save an extra £2.5 billion on last year from its budget.
One NHS sector likely to lose out in the reform is the nursing and midwifery division. The Scottish Government recently projected a 1.7% drop in nursing positions by the end of the financial year, putting nearly 1000 nurses out of work.
With nursing salaries starting at around £21,000, just 5% more people taking out a health insurance policy could pay the wages of over 118,000 NHS nurses.
The extra £2.5 billion could also be put towards the cost of cancer drugs which the NHS currently cannot afford.
Newly licensed drug Yervoy could increase the life expectancy of skin cancer sufferers. But at £75,000 per patient, it may be too expensive for use on the NHS.
But just 5% more people taking out health insurance could save enough to treat 33,000 people with malignant melanomas.
Dr Richard Theo, managing director of ActiveQuote, said: “A lot of people are under the misapprehension that the NHS and the private medical insurance industry are working in competition with each other.
"On the contrary, the NHS and the PMI sector increasingly work hand in hand to serve the UK’s health needs. When choosing a health insurance policy you should make sure it complements the service you already receive from the NHS.”
Compare health insurance quotes online with ActiveQuote now to gain peace of mind about your future health and avoid the NHS cuts.
© ActiveQuote Health Ltd. 2011