Private medical insurance (PMI) claims in the UK continue to rise as more employees turn to private healthcare amid persistent pressure on the National Health Service (NHS), according to new analysis from employee benefits consultancy Broadstone.
Claims incidence among PMI members increased from 21% in 2021 to 27% in 2024, a six percentage point rise over three years. Broadstone said the trend is linked to declining NHS accessibility, with patients increasingly relying on employer-funded medical coverage to receive treatment more quickly.
“The jump in growth of PMI claims since 2021 is a clear indicator of an NHS that is struggling to meet demand,” said Sharon Harwood-Davis, head of corporate healthcare pricing at Broadstone.
“She added that employers are broadening eligibility to include more workers, which has expanded access to private medical services. Harwood-Davis warned that the rise in frequency of claims “is likely to directly drive premium inflation from insurers.”
Mental health now accounts for a growing share of PMI claims spending. The proportion spent on mental health treatment rose from 8% in 2022 to 13% in 2025 year to date. Harwood-Davis said increased demand reflects both a cultural shift toward seeking support and long NHS wait times for services such as counseling, cognitive behavioral therapy (CBT) and psychiatric care.
Across the UK, mental health needs have been rising for decades. The Adult Psychiatric Morbidity Survey reported that common mental health conditions such as anxiety and depression increased from 15% of adults in 1993 to 23% in 2024. The report also found that socioeconomic inequalities persist, with 26% of people in the most deprived areas experiencing a common mental health condition versus 16% in the least deprived areas.
Alongside this trend, the UK government recently committed up to £50 million in funding over the next five years to support the Mental Health Goals program, designed to accelerate development of new treatments and expand access to clinical research. Poor mental health affects one in four people in England and is estimated to cost the UK economy £300 billion annually in lost productivity, absenteeism and care.
Harwood-Davis said mental health support “has become a central feature of workplace healthcare provision” and urged employers to prioritise preventative strategies.
With musculoskeletal conditions still accounting for 39% of PMI claim costs in 2025 year to date, and cancer spending falling from 20% in 2022 to 9% in 2025 year to date, mental health is becoming a more significant driver of health benefit design and insurer pricing.
Is the growing reliance on PMI for mental health care a sustainable long-term solution for employers and insurers—or does it signal deeper structural issues in UK healthcare? Share your thoughts in the comments.
