The cost of private medical insurance (PMI) needs to fall 15%.

That's the argument made this week by Dr Damien Marmion, managing director of Bupa Health Funding, on the BBC's Wake up to Money programme. He warned of a “flatline and decline” in interest in health insurance if costs did not start to fall.

A survey carried out by the healthcare company reflects this concern. More than half of its customers are now worried about the price of buying health insurance.

To make services more affordable, Bupa has reduced their own rates and says it wants its competitors to do the same.

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Healthy competition

Last August the Competition Commission (now part of the Competition and Markets Authority) said that there was a lack of competition between private hospitals, which is needed to drive prices down. The Commission also said that insurers, including Bupa, need to be clearer when telling customers what to expect from their premiums.

It proposed five measures to make private medical insurance cheaper: divestiture of hospitals; Private Patient Units (PPUs); incentive schemes; hospital and consultant performance; and consultant fee information.

Check out Is private medical insurance about to get cheaper? for more.

How to lower your private healthcare costs

There are a few things you can do to shrink the price of your policy, such as reduce the level of cover or increase your excess, What's more some policies actually cut your premiums if you live more healthily.

For more read How to pay less for private medical insurance.

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How to pay less for private medical insurance