Costly Drugs Push Up Cost of Health Insurance

There has been a significant increase in cost of health insurance policies in the UK, driven largely by expensive drugs which are not available on the National Health Service . The cost of private medical insurance rose by 14 per cent this year as insurance providers face costly pay outs for expensive cancer treatments. The knock on effect is that premiums for the best medical insurance policies have increased by between £100 and £330 a year as insurers look to restore their profit margins.

One such drug that is pushing up the price of health insurance premiums is the cancer drug Avastin. Private health care provider Bupa spends £12 million a year on the drug, which has been turned down by the National Institute for Health and Clinical Excellence (NICE) – the organisation who decide if a treatment is affordable for the NHS .

Health insurance providers have made the right noises about Avastin, insisting they will continue to pay for the drug regardless of its availability on the NHS. However, industry experts are warning consumers that many insurance providers will have limits as to how long, or how much, they will pay for a treatment.