Pressures on NHS services mean some patients are increasingly looking at private care. Health insurance can help pay for the cost, and the latest industry figures show a rise in the number of people taking out a policy.
New data from the Association of British Insurers (ABI) shows the total number of people covered by private medical insurance (PMI) rose by 4% between 2023 and 2024, while the number of people making a claim increased by 10% over the same period.
But while PMI can help pay for expensive private treatment, it isn’t cheap and doesn’t cover everything. Here, Which? takes a look at whether the perks of health insurance are worth paying for.
Rise in private health insurance
The total number of people covered by PMI increased 4% between 2023 and 2024 to hit 6.5 million, the latest ABI data shows. Of these policyholders, the lion’s share (4.8 million) were covered by workplace schemes.
The figures also show a 10% rise in the number of people making a claim, with insurers paying out a record £4bn in 2024. That’s up 13% compared to the previous year’s figure of £3.57bn.
However, more recent figures suggest a more mixed picture. Research from the Private Healthcare Information Network (PHIN) shows the number of patients using health insurance to access private clinics fell by 3% year on year between April and June 2025.
Separate survey data from Howden Life and Health, published in 2025, shows that 42% of PMI policyholders have made a claim in the past five years. The top reason was diagnostic tests and scans, with mental health services high on the list for younger claimants.
What’s behind the rise?
Decisions about taking out private health insurance can be influenced by several factors, including access to NHS treatment, the availability of diagnostic tests, employer-provided cover and the cost of private care.
Official figures show around 2.75 million patients in England were waiting more than 18 weeks for treatment in November 2025. But private health insurance will not suit everyone, and policies vary widely in what they cover and how much they cost.
To help you decide whether private health insurance is right for you, we’ve weighed up the pros and cons of taking out a PMI policy.
Pros
1. Avoid big one-off costs
We found that the cost of a private GP appointment can cost between £40 and £90, which you might think is worth it to be seen quickly.
But paying for treatment can burn a sizeable hole in your pocket – especially if it’s for something serious. For example, a hip replacement could easily cost more than £10,000.
Taking out private health insurance can help you avoid those costs, and providers will usually settle the bill with the clinic directly, so you won’t need to pay anything upfront and reclaim the money later.
- Find out more: see our guides on private surgery and private GPs
2. More choice
In theory, going private gives you the freedom to pick the doctor and hospital to suit your time and place, which isn’t possible on the NHS – although some providers limit options according to the level of cover taken out.
You’ll also have a greater choice of treatments. That’s because the NHS can’t afford some procedures and medicines. Some new cancer treatments, for example, are only available privately and should be covered by insurance.
3. Extra support
Some PMI policies will offer mental health support or follow-up care that you might not otherwise get on the NHS. For example, extended physiotherapy to help you recover from an injury or surgery.
4. Wellness perks
Private health insurance often includes extra benefits aimed at promoting a healthy lifestyle, such as discounted gym memberships, free coffee or subscriptions to mindfulness apps.
Although these rewards might catch your eye, it’s important to think about whether they truly add value compared to the cost of your premium. Finding the right policy that covers your needs is key, regardless of the perks it offers.
- Find out more: private medical insurance perks explained
Cons
1. Premiums can add up
The cost of PMI will depend on the level of coverage and your personal circumstances, such as age, medical history and where you live.
Our research into private health insurance costs found that a 50-year-old living in Oxfordshire stands to pay an average of around £92 a month for comprehensive cover. That tots up to £1,104 a year.
Also bear in mind that with most insurers, you now have a no-claims discount. This means that if you claim, your premium will probably go up as a result. Check the terms and conditions of any policy closely to understand how claiming impacts the cost you pay.
2. Not everything is covered
Chronic or incurable conditions are rarely covered, and neither are injuries from some high-risk activities or pregnancy. Even people with certain jobs, such as oil rig workers, aren’t covered. Pre-existing medical conditions are also usually excluded.
Plus, while basic policies usually cover treatment for patients who are required to stay in hospital for at least one night, if you haven’t been admitted and are an outpatient, then cover is often extra.
3. The excess can be high
Even if your insurance agrees to pay the cost of treatment, there is usually an excess to pay and it could still be hundreds of pounds depending on the level of cover you’ve chosen.
4. PMI is not a ‘golden ticket’
Yes, having private health cover does mean you generally get diagnosed and treated faster than on the NHS. But that doesn’t mean you can jump the queue for NHS appointments, whether that’s to see a GP or a consultant at the hospital.
And while private healthcare can offer a more comfortable treatment experience, such as private rooms and wider choice of food, the quality of procedures and appointments is likely to be much the same as it would be using the NHS. That’s largely because many private doctors also work for the NHS.