Fundamental change is needed to tackle the "complacent" private healthcare market and resulting unsustainable PMI premiums, Bupa has warned.
Dr Damien Marmion, managing director of Bupa Health Funding, speaking at the Reform think-tank in central London this morning, said fundamental reform of quality, transparency and cost was needed to stop the private healthcare sector pricing people out of the market.
Bupa research showed in the last five years more than 700,000 consumers left the market amid price rises.
Marmion said: "And there are many more people who would love to access the benefits of private healthcare, but are being priced out of the system. Since returning to the UK I have learnt that the number of insured is the same as it was in 1995.
"Private healthcare is in need of reform. For too long the private healthcare sector has been complacent, believing that there would always be demand for a private complement to the NHS, whatever the scale of premium rises.
"Health insurance premiums have been rising by unsustainable levels due partly to increasing treatment costs, but mainly because of a lack of competition in the healthcare system."
Marmion added that strong intervention from the Competition Commission was key with more competition and accountability to come out of its current investigation into private healthcare.
"We need doctors and hospitals to work with us - and other insurers - for the long-term health of this market," he said.
He stated three issues needed to be prioritised; a continuous challenge on quality and transparency; a recognition that commissioners with healthcare expertise have both a right and a responsibility to customers; and a need to be more obsessive about improving value for money.
A Bupa survey of its customers showed 9 out of 10 Bupa customers thought consultants should communicate cost of the appointment and any tests or treatments, before the appointment itself.
