There is clearly a disconnect between organisations and leadership and what workers want, but the importance of international private medical insurance (IPMI) is increasing as public infrastructure continues to collapse.
That is according to Dr Luke James, partner and workforce health leader for Europe at Mercer Marsh Benefits (MMB).
“We’ve got this public infrastructure, collapse, specifically around healthcare, and it really is pretty horrendous,” James told delegates at Health & Protection’s third annual IPMI Summit at Sopwell House in St Albans today.
James is a medical doctor with more than 25 years of experience as a family physician, medical educator, non-executive director and board member. He joined MMB in 2023 as the workforce health leader for Europe.
“I’ve worked in the NHS for 25 years – I still do, and it’s the worst I’ve seen it – seven million on the waiting list and 11 million on hidden waiting lists,” he said.
As a result: “Having private medical insurance is such a crucial benefit,” he continued.
“We’re seeing that PMI is used more and more – and it’s not just in the UK.
“I cover all the European countries and the situation in Italy and Spain is pretty horrendous and is now starting to impact the private medical insurance market.
“In Spain, waiting times to see a private dermatologist are as long as waiting to see a state dermatologist. So, we’ve got real issues about that.”
James warned: “This is not going to change in the next generation, certainly in the UK – and Europe is just a little bit behind the curve.”
Economic difficulties, recoveriing from the pandemic, the cost-of-living crisis and wars were all contributing to the challenges facing all organisations, and that is contributing to increased prices.
“In Europe we’re seeing more pressure on premium rises of up to 90% year-on-year, certainly in Italy and Spain,” he said.
Another issue is that organisations are questioning why they are providing primary cover and whether that should be their role at all.
“It is so expensive the CFO is kind of throwing their hands up,” James said.
“But its so valued and so important, it is something that is used for talent acquisition and people will make their choice around the organisation based on their medical benefits.”
As a result there is a diversion of views on the challenges around health insurance – with employers concerned about the cost of the programme and employees not bothered about that aspect.
“They are more concerned about aspects of communication and understanding what kind of benefits are available and what they have access to,” he continued.
“So it is very different ends of the spectrum there from the employee and employer.”