Health pay cut is a sickener

By ROSANA SPERO
Updated:

 

IT'S not easy being a customer of health insurer HSA. Some are to have their cover slashed while premiums stay the same.

While for others, premiums have soared by more than 200% because they had made too many claims.

This is the same company that last year kicked out hundreds of cash plan and medical insurance customers because it decided they had claimed too much.

Furthermore, HSA is a mutual company so its customers actually own the business.

Its first New Year present was to the axe the cover to some customers of its flagship Health Cash Plan policy.

Cash plans pay out sums to help with the cost of a set list of treatments such as dental, osteopathy and chiropody treatments. HSA refuses to say how many are affected by the move.

Terry and Emily Shapland have the HSA Health Cash Plan and were asked to pay the same amount for nearly half their previous level of cover.

Mr Shapland, 62, says: 'HSA wrote to my wife and me to say that in previous years we had been able to claim 100% of the cost of treatments by claiming half from each policy.

'But it has changed its systems, so we will now receive only 100% on dental and optical claims, with 50% of claims being paid on the rest. In return, it says it won't put our premiums up this year.'

The Shaplands, from Feltwell in Norfolk, as well as hundreds of other 'dual registration' customers, have been moved to a different version of the Health Cash Plan to other existing and new customers.

Dual registration allowed each to claim from their spouse's policy as well as their own so they could claim back 100% of the cost of any treatment. Under the terms of the new policy they would have continued paying £17.60 a week, but would receive only half the cost on claims for treatments such as physiotherapy, osteopathy, chiropractic, chiropody and health screening.

Cover for hearing aids has also been removed from their plan - a benefit worth up to £240 a year each on their benefits level.

Mr Shapland says: 'They are tinkering with the rules to suit themselves. They have been whittling away at benefits for a while now.

'Last year, they removed CT scans, ultrasounds and MRI scans from cover, which meant we had to pay out when my wife had a full health check. Since they have written, we have decided to downgrade our cover to £6.60 a week as this is the only way that it makes financial sense to us.'

In a separate move, HSA has also racked up the charges for older people who have made claims.

Brian Oakford, 65, was horrified to find his premiums were to rocket from £44 to £96 a month because he had made a series of claims over the past few years.

'I have been a member for over 35 years and never claimed until recently. But all the premiums I have paid in the past don't count for anything. They are not booting me out for claiming to much, but pricing me out instead,' says Mr Oakford.

Jeremy Chadwick at HSA claims the plan still remains good value for money despite the rise in premiums.

HSA says the changes will ensure all customers are treated fairly. It argues that customers such as the Shaplands were able to take out more than others because of the dual claiming facility.

This was also the reason given for getting rid of hundreds of cash plan and private medical insurance customers last year.

Carolyn Derrington, strategic marketing director at HSA, says: 'To ensure we offer products that are fair and equal for all, the dual pricing method of claiming twice, open to a minority of our customers, had to be addressed.

'We are not cancelling these affected customer policies, but removing the ability to be covered under two policies. The total amount of cash benefits available is similar to before.'

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