While in the market as a whole……

The annual report on the industry 'Laing’s Healthcare Market Review' was published recently and, as always, makes interesting reading.

The number of people covered by private medical insurance fell in 2005 for the fourth year running, although this trend is slightly misleading because this period also saw continued growth in non-insured plans, most obviously Health Trusts. Overall, Laing’s estimates that 7,533,000 people were covered under all types of medical expenses plans in 2005. This is around 12.5% of the UK population. Of these, slightly under a million people are estimated to be covered under Trusts and other non-insured plans.

Demand for medical expenses plans may have fallen slightly, but it is clear from the report that this is attributable to a continuing downward trend in the numbers of people prepared to pay for themselves in individual plans.

Steep price rises, together with lower NHS waiting lists, are probably the main reasons why just under 100,000 people dropped out of the individual market in 2005. However, this is now only a quarter of the total. The other 75% are people paid for by their company, or people benefiting from the lower rates available in company schemes when paying for their families to join. It seems clear that price rises ahead of general inflation and the improved NHS are not greatly affecting the value that employers perceive in medical expenses as a benefit.

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