Big rise in private medical insurance work scheme

expansion

Hello,

Are there usually safeguards to prevent major increases to the cost of private medical insurance work schemes in the case of high deductions?

I am curious if this is normal, just part of life, or if my company hasn't negotiated well.

I have been a member of my employer's scheme for 12 years. Until this year, increases to the cost had never been above 10%. In some years, when we changed insurance company the rate even went down but on average it was 5% a year, just under £400 a year when I joined 12 years ago to about £650 until this year.

We have been involved the rate will be increasing to 1100, almost double "because we have had high expenses". I know this to be mostly related to a very expensive cancer therapy of an employee's spouse. It is these type of scenarios why I and colleagues sign up but there is a sense of "unfairness" at how this cost is being spread but it is understandably a touchy subject as such it hasn't been raised officially as people are concerned it would seem insensitive.

Is it normal for these group policies to work like this, where every individual pays the same even if for example they haven't ever made a claim? And when there is a big expense (million pound therapy) a huge rise to everybody's rates?

Cheers, Andy

Quentin

See how much you would have to pay were you to drop out of the work scheme and join up directly for similar cover, do the sums and make the choice.

Kynthia

I know in one situation where the employer paid for the medical cover as a perk. It became much cheaper for them to remove the spouse from the group work policy and reimburse the employee for the cost of that individual's cover. Could something similar be proposed here?

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Quentin, I can of course leave the scheme and do my own thing, I was instead interested to know if this is normal or if my employer cocked up with the contract terms, etc.

Kynthia, so basically kick out the spouse and give a refund? I can't see that happening.

jaybeetoo

expansion wrote: »

Are there usually safeguards to prevent major increases to the cost of private medical insurance work schemes in the case of high deductions?

No

Is it normal for these group policies to work like this, where every individual pays the same even if for example they haven't ever made a claim? And when there is a big expense (million pound therapy) a huge rise to everybody's rates?

Yes - that is the point of a group scheme as opposed to individual cover. The old pay the same as the young, the sick the same as the healthy.

Insurers look at the claim history of the group when setting premiums.

Kynthia

expansion wrote: »

Quentin, I can of course leave the scheme and do my own thing, I was instead interested to know if this is normal or if my employer cocked up with the contract terms, etc.

Kynthia, so basically kick out the spouse and give a refund? I can't see that happening.

No, fund them separately.

expansion

That is an idea. I will suggest this to a colleague who is more privy to our HR.

MarkCorrigan

jaybeetoo wrote: »

No



Yes - that is the point of a group scheme as opposed to individual cover. The old pay the same as the young, the sick the same as the healthy.

Insurers look at the claim history of the group when setting premiums.

This is incorrect information - the old do not pay the same as the young. Group schemes consist of age brackets and not sure why you (jaybeetoo) would make up information on this...?

expansion

Fairly certain we all get the same email with the same figures, I will check the email on my work computer, but I'm fairly certain my work scheme doesn't have age brackets and all employees pay the same (partners, children are extra of course)