What is Private Medical Insurance (PMI)?
PMI is designed for speed and access when you have a new medical problem.
PMI typically covers:
- Specialist consultations
- Diagnostic tests (MRI, CT, X-rays)
- Private hospital treatment and surgery
- Cancer treatment
- Some mental health treatment (with limits)
PMI focuses on acute conditions — things that can be treated and resolved.
It’s about avoiding long NHS waits, not day-to-day healthcare.
What is a Health Cash Plan?
A health cash plan is much simpler.
You pay a small monthly amount and get money back for routine healthcare expenses.
Cash plans typically reimburse:
- Dental check-ups and treatment
- Eye tests and glasses
- Physiotherapy
- Prescription charges
- Some complementary therapies
There’s usually:
- A fixed annual allowance
- No underwriting
- No exclusions for medical history
But there’s also no cover for major treatment.
The key differences at a glance
| Area | PMI | Health Cash Plan |
|---|---|---|
| Main purpose | Speed + private treatment | Reimburse routine costs |
| Covers surgery | ✅ Yes | ❌ No |
| Covers diagnostics | ✅ Yes | ❌ No |
| Covers dental & optical | ❌ Usually no | ✅ Yes |
| Emergency care | ❌ No (NHS) | ❌ No |
| Medical underwriting | ✅ Yes | ❌ No |
| Typical cost | Higher | Low |
They solve different problems.
A common (and costly) misunderstanding
Many people buy a cash plan thinking:
“This will cover private healthcare.”
It won’t.
A cash plan might refund £50–£100 for physio —
but it won’t pay for:
- Private scans
- Consultant fees
- Surgery
- Hospital stays
This is one of the most common causes of disappointment.
When PMI is the better choice
PMI is usually the right option if:
- Waiting for diagnosis or treatment would be difficult
- You’re self-employed or can’t afford long time off work
- You want access to private hospitals and specialists
- You’re concerned about NHS waiting times
PMI deals with risk and disruption, not small bills.
👉 [Check whether PMI makes sense for your situation]
When a health cash plan makes sense
A cash plan can be useful if:
- You regularly pay for dental or optical care
- You want predictable reimbursement for routine costs
- You don’t need private surgery cover
- You want something cheap and simple
Cash plans are often good value-for-money, but only within their limits.
Do people ever have both?
Yes — and this is often the smartest setup.
Many people use:
- PMI for serious or disruptive medical issues
- Cash plans for everyday healthcare costs
They complement each other — they don’t overlap.
Cost comparison (realistic expectations)
- PMI costs more because it covers high-cost treatment
- Cash plans are cheap because they cap what you can claim
If you expect a £5,000–£10,000 medical bill to be covered, you need PMI — not a cash plan.
Why independent advice matters here
This is one of the most misunderstood areas of UK health cover.
Independent advice helps you:
- Avoid buying the wrong product
- Set realistic expectations
- Combine PMI and cash plans sensibly
- Avoid paying twice for the same thing
👉 [Get independent advice on PMI vs cash plans]
The bottom line
PMI and health cash plans are not competitors — they’re different tools.
- PMI → speed, private treatment, major costs
- Cash plan → small refunds for routine care
Buying the wrong one won’t save money — it just leaves gaps.
The smart choice is understanding what problem you’re actually trying to solve.
