What is Medical Inflation?

As the availability of new technology increases, particularly in the area of pathology (or investigation and diagnosis), so does the frequency of doctors using the tools at their disposal.

In addition, this technology is constantly advancing as experts create new and more precise and versatile tools for diagnosis - these are among the main reasons for the continued increase in our claims costs.

Below are some specific examples of common medical conditions and treatments where we've seen continued advances and rising claims costs:

Knee injuries
In the past, where a consultant may have carried out an examination and maybe an x-ray to diagnose and prescribe treatment for a knee injury, now an MRI scan and/or arthroscopy are more common ways to investigate this type of condition.

Cardiology
We have seen a rise in investigation costs in this area in particular increasing use of ultra sound investigations and scans.

Implanted devices such as pacemakers have evolved from fairly simple apparatus to ones that can 'shock' the patient if their heart goes out of rhythm. These devices have an in-built battery which, when it runs out, means that the whole thing has to be replaced. Their cost can be in excess of £30,000.

Cancer
The cost of chemotherapy continues to change dramatically with the development of new, and often expensive, drugs. Drugs are used for longer periods of time and often in combination with other drugs.

Combinations of treatments are now frequently used to fight the disease, so a patient may well undergo surgery along with radiotherapy and chemotherapy in the course of their treatment. As a result, an overall claims cost of £50,000 for cancer treatment is now seen frequently.

Breast reconstruction
This treatment is now becoming more and more common with the types of reconstruction becoming more complex and sophisticated. This is a fantastic advance but does have costly implications for the claims that we pay.

PSA measurement testing
Increased use of health screening at certain ages, results in more people needing investigations and more disease is being detected. In the example of PSA testing for prostate problems this means that more men are having their prostate investigated and operated on.

Advances in treatments and investigations are positive for our customers and we will continue to support them through paying claims within the terms of their policy. However, to do this we have to reflect the increased claims costs through premium increases.

Source AXA PPP Website 25 August 2009

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