Health insurer WPA has delivered a new broadside against exploitative private health charges this week by launching a product which it describes as the 'third way.'
The product, called XS health, dramatically cuts annual premium charges by switching the burden onto the excess.
Annual premiums, which start at £50 and rise to a maximum of £626 depending on a policyholder's age, all carry an excess of £1,500 up to the age of 60. After the age of 60 the excess rises to £3,000.
Chief executive Julian Stainton believes the new product will open private medical insurance to the masses.
"Why should private medical care, which is often given by NHS doctors, be only for the rich?," he said.
"With XS, everyone from young families to senior citizens can take control of their healthcare in a way that has never been possible before."
The move is part of WPA's campaign to drive down premiums and rid the market of what it claims is consumer exploitation.
NOP Research in July revealed premiums have risen by 44% over the last two years, and, if they go up by another 25% over the next two years, nearly half of all subscribers would cancel.
In June, WPA accused BUPA Hospitals of running a two-tier charging system whereby insureds are charged an average 26% more than those who self-pay.
BUPA Hospitals denied the allegation, but WPA countered by asking its policyholders to self-pay with the guarantee that they will be totally reimbursed within 48 hours.
In addition policyholders would be paid half the difference of the two prices.
WPA marketing manager David Ashdown said about 20 policyholders are taking the self-pay option every day, giving the insurer an average saving of about 30% a claim.
BUPA Hospital manager Duncan Gray said the figures were meaningless because WPA were probably comparing one-off individual cases with the average figure.
The new XS health product can be bought either directly or on the internet, but will not be available for brokers and intermediaries to sell.
It requires policyholders to be either fully medically underwritten at the outset or at the point of claim.
A Gallup poll in August found that 55% of people would be willing to pay £1,500 towards an operation rather than wait 12 months on the NHS.
The product can be found at www.xshealth.co.uk