How Do Healthcare Cash Plans Work?

When it comes to private health cover policies, many people simply do not realise that there are alternatives to private medical insurance on the market. In this article, we will look at healthcare cash plans provide an alternative option to private medical insurance; considering what they are, how they work and how they could benefit consumers.

What is a healthcare cash plan?

Healthcare cash plans are different to the typical private medical insurance policies. With the cash plan option, when you incur medical costs the policy will pay back some money towards them in exchange for monthly payments (premiums).

How does it work?

In simple terms, you pay a monthly premium in exchange for your healthcare Medical insurance cash plan cash plan policy then you can claim back a predetermined maximum percentage of certain medical charges. For example, if you spend £100 at the physiotherapist and you are on an 80% cash plan then you could claim back £80 (keep your receipt!).

The types of medical treatments covered and the degree of cover will vary between plans and providers and most policies will have a maximum amount payable on claims as well as a claimable percentage so you should always ensure that you know exactly what you are entitled to.

Common treatments covered by a healthcare cash plan include osteotherapy, physiotherapy, chiropody and opticians and dental costs. Many plans will also offer possible extras such as a lump sum 'baby bonus' payment for each child that you have or a contribution towards an annual health screening. Although they do not tend to cover hospital treatments costs, some will offer small cash allowances if you or your child should have to stay overnight in hospital.

What's the catch?

There is no particular catch as such but as with all products, it is vital to know exactly what your policy entitles you to before agreeing to anything and check any fees which may be chargeable. For example, there may be a qualifying period of time before you can make any claims at all and the percentage amounts reclaimable may vary between different treatments.

Moreover, the cash plan will not give you the 'full service' health cover which private medical insurance may. It simply allows you a means of offsetting some or all of the costs incurred from typically more 'day-to-day' healthcare requirements. Because of this the healthcare cash plan tends to be considerably cheaper than many full-service medical insurance options.

Costs such as dental treatments or new glasses are often overlooked in budgets and can therefore cause strain on our finances. To find out more about private medical health cover, you may wish to speak to an expert medical insurance advisor for more information or a quote for your needs.

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