The state of health

Good health is important, but so too is knowing that you are protected if there is a problem. Most of us rely on the National Health Service (NHS) for our medical care. During the past few years, the NHS has enjoyed something of a boom period, with funding expanding rapidly as part of the Government’s ongoing reforms. But there are indications that more than a little belt-tightening is now going on.

For example, in 2007/08, the Department of Health’s budget rose by 8.8% to an estimated £89.2 billion, but its budget this year will grow by less than half that – by 4.5%, to £94 billion.¹ There are a number of requirements from this restricted budget, including:

• ‘Medical inflation' – the rising cost of new treatments and drugs.

• The cost of computerising the NHS (only £2.4 billion of the estimated £12.4 billion cost to 2012 has so far been spent).²

• An ageing population.

Even increases well above inflation may not be enough to avoid cutbacks in some areas.

For most of us, the NHS provides the essential healthcare we need. But sometimes you may have additional requirements that the NHS cannot meet. If you want treatment at a time to suit you, a private room in hospital because you are worried about big mixed wards or simply want to maintain continuity of care, medical insurance can be a very effective solution. Today’s insurance includes options to tailor cover not just to your needs, but to your budget, too. And a health cash plan can help with everyday health costs – such as dental and optical care.

With changes to incapacity benefit scheduled for later this year, coupled with the pressures on NHS budgets, having a financial check-up of your health and protection cover now could be a very sensible move.

¹ HM Treasury ‘Red Book’ 2008
² Department of Health, March 2008