Can We Get a Company Health Cash Plan?
In most cases the answer is yes, you can get a Corporate Health Cash Plan.
There tend to be very few qualifying criteria for staff and they’re easy to implement. Moreover, they’re relatively cheap to set up and administer.
Typically your staff must be within the minimum and maximum age range of the policy. You may also have to have a minimum number of staff, but this will vary between providers.
Covering Pre-Existing Conditions
Even if an employee has a pre-existing condition, it’s unlikely they’ll be refused entry to the Health Cash Plan. There’s rarely a need for a medical before staff can join a policy, either.
This reflects the fact that there are strict caps on the amount an insurer will pay towards treatment in any given policy year.
Also, the treatments Health Cash Plans cover are usually more minor than full Business Health Insurance and so patients pose much less of a risk to an insurer. This means insurers rarely require underwriting for a Company Health Cash Plan.
How Much Does a Corporate Health Cash Plan Cost?
While every business is different, Company Health Cash Plans are usually one of the cheapest insurances you can buy for your staff.
Furthermore, unlike many other policies, Group Health Cash Plans tend to have a flat fee. Usually, people within the same age group cost the same for the same level of cover.
Ultimately, the cost of a Corporate Health Cash Plan depends on:
- Your workers’ ages
- The number of people you want to cover with your plan
- The level of cover you want from it.
Example Pricing of Corporate Health Cash Plans
The cost per employee is far more dependent on the level of cover you wish to provide rather than the demographic of your workforce.
Below we provide example pricing for two clients who wanted to provide a core level of cover for their employees.
How is a Corporate Health Cash Plan Taxed?
For companies providing a Health Cash Plan for your staff, you can offset the cost against your corporation tax bill. Generally, premiums are a tax-deductible business expense.
However, Corporate Health Cash Plans are a P11D / benefit in kind. You’ll therefore need to pay employer’s National Insurance contributions on the benefit.
For employees, a Company Health Cash Plan is also a P11D / benefit in kind. This means staff must pay additional tax as a result of having the policy.
HMRC effectively views a Health Cash Plan as an untaxed increase in workers’ wages. To compensate for this, their annual allowance — the amount they can earn before HMRC deducts tax — will be reduced by the same amount as the premiums paid on your behalf.
How Do Insurers Pay Corporate Cash Plan Claims?
The general route to a Company Health Cash Plan claim is as follows:
- Have an eligible treatment as listed in your policy documents.
- Pay as you normally would for this treatment, collecting a receipt detailing the exact treatment you’ve had and the person / practice who provided the treatment.
- Submit your claim with the insurer — you can do this online, via the insurer’s mobile app or even by printing a physical claims form and posting it in.
- Get the agreed cash amount towards the treatment you’ve had paid directly into your bank account, usually within 4-7 working days of the insurer receiving the claims form.
You may wish to check with the insurer that the treatment you’re seeking will be covered, as well as the level of cover the insurer offers for that treatment.
Initial Excess Period
When you first take out the policy, your workers may have to wait out an excess period before they will be able to make a claim.
The excess period of the policy will depend on your insurer, but they can be as long as 6 months.
Where Does a Health Cash Plan Fit In An Employee Benefits Package?
Company Health Insurance is the most popular benefit among workers. However, it’s also one of the more expensive insurances to offer your staff.
A Health Cash Plan can therefore slot in as a happy medium between no cover and comprehensive Private Medical Insurance.
A company may take out Health Cash Plan policy alongside Group Life Insurance, another low-cost yet popular employee benefit. This pays out a lump sum should one of your workers pass away while in your employment.
Other options to consider to build out a rounded employee benefits package include:
- Group Income Protection
Also known as Group Sick Pay Insurance, this pays out a proportion of your workers’ wages if they’re too ill to work. It works alongside and complements your company’s sick pay policy.
- Group Critical Illness Insurance
Pays out a lump sum to your staff should one of them become critically ill with one of the illnesses listed in the policy terms. The most common claims are for cancer, heart attacks and strokes.
Using a Health Cash Plan To Pay A Private Medical Insurance Excess
In some cases, employers set up Corporate Health Cash Plans to run alongside full Private Health Insurance.
The Health Cash Plan pays the excess on the Health Insurance policy. Having an excess keeps the cost of full Health Insurance; however, it can deter workers from using the scheme.
With a Corporate Health Cash Plan to cover the excess, companies therefore benefit from lower premiums on their Business Health Insurance and employees are less deterred from using it given the excess is covered.
Setting up a Health Cash Plan to pay the excess on a full Private Medical Insurance policy can be complicated. It’s best you seek the advice of an expert, such as one of the team at Drewberry, if you’re considering this option.
Who Are The Best UK Corporate Health Cash Plan Providers?
We are an independent advisory firm who have access to all the leading UK health cash plan providers. Below is a list of the main insurers we work with:
- Westfield Health
Each insurer has their own quirks and way of working so it is important to do your research when comparing policies. Price is often a driver when choosing cover but there are other things to consider in terms of customer support and the speed of claims.
Additional Cash Plan Benefits
Traditionally Cash Plans have focused on covering a fixed fee for everyday healthcare costs such as dental, optical and alternative therapies. However, there are a number of additional tangible benefits which some insurers are choosing to include to make their policies more attractive including:
- 24 / Virtual GP Service
- Telephone Counselling
- Personal Accident Cover