Families across the UK are being forced to cancel their private medical insurance because of soaring premiums.

With the price of private medical insurance (PMI) rising at an alarming rate, many families are cutting back on pricey health insurance, and looking to more cost effective options like health cash plans, to fulfil their requirements.

PMI allows users to skip the NHS waiting lists, receiving fast track consultations and private treatment, covering everything from surgery, consultations, nursing and hospital care.

PMI has always had a reputation for being hugely expensive – a reputation proven well founded in recent years. Over the past decade, the average annual cost of private medical insurance policies have risen by £500 to £1,870 per person, according to new Money Mail research.

Naturally this price hike of nearly 40 per cent is leaving many families with the tough decision of whether to cancel their private medical insurance, removing the sense of security such policies bring.

But where has this price increase come from? The simple reason is lack of competition between the big insurers. The main market competitors are far and few between; and their market dominance leaves little room for competitors. As a result there’s simply no need for companies to be competitive by offering consumers good value price plans, resulting in high (and rapidly rising) prices. As a result, families are being forced to reconsider even having PMI at all.

However, there is an alternative to costly PMI packages that many individuals are utilising to reduce outgoings. Health cash plans allow you to claim back money from everyday healthcare bills like dental or optical treatment. They are often considered much more cost-effective, with factors such as age not affecting the price of the plan, unlike with PMI.

Its important customers understand what they want from health insurance. PMI packages may be extensive in the products and services they offer, but with premiums through the roof, many now consider health cash plans a more cost-effective option to health management that complements NHS care.

Whatever the rights or wrongs, it’s clear the PMI industry must address the needs of consumers in a market place where cost effective alternatives, like health cash plans, are available and offer customers peace of mind for as little as £1.90 a week.

For more information contact Plutus Health on 01633 266152.