A Corporate Health Cash Plan is a simple and affordable way to help your staff with the cost of everyday healthcare. Depending on the level of cover, it can provide your employees with cashback to help cover the cost of a range of everyday health treatments including dental check-ups, eye tests, prescriptions and physiotherapy.
This depends on your policy and the tier you choose. For example, a first tier might only offer £100 towards dental treatment whereas a higher tier could offer £250. You get to choose which tier your employees are on.
The most common areas a policy covers include:
However, while it’s very popular among workers, it often comes with a big obstacle — the cost. Not every business can afford a comprehensive Corporate Health Insurance scheme.
This is where a Health Cash Plan can step in. Implementing such a policy can be a nice intermediary between offering staff no health cover at all and full Private Medical Insurance (PMI).
There are numerous benefits for companies:
Business Health Insurance
Corporate Health Cash Plan
Covers medical treatment for acute conditions in private UK hospitals, letting staff skip NHS waiting lists.
Pays for minor and regular medical expenses (e.g. dental and optical checkups, prescription fees etc.)
Usually covers the full cost of treatment for eligible conditions, less any policy excess.
Cover limited per type of treatment (e.g. a fixed amount for dentistry) per policy year.
Covers private healthcare only (although some providers offer cashback if you choose NHS inpatient care over private care).
Can pay towards both private and NHS healthcare, bridging the gap between free NHS services and those with fees, such as dentistry.
Insurers have private hospital lists and recommended specialists you can be referred to.
You can typically choose the treatments you receive and where you get them, providing the policy covers a given treatment.
Most insurers help you organise your treatment and the bill goes directly to them.
You have to organise your own treatment and pay for it initially before the insurer reimburses you.
While every business is different, Company Health Cash Plans are usually relatively cheap.
Ultimately, the cost of a scheme depends on:
While workers’ age is a factor, the cost per employee is far more dependent on the level of cover you provide rather than the demographic of your workforce.
Below we provide example quotes for two clients who wanted to provide a core level of cover for their employees.
Isle of Wight
Number of Employees
Level of Cover
Cost per employee
The general route to a claim is:
You may wish to check with the insurer that the policy covers the treatment you’re seeking, as well as the level of cover the insurer offers for that treatment.
When you first take out the policy, your workers may have to wait out an excess period before they can make a claim. This will depend on your insurer, but they can be as long as 6 months.
Companies providing Health Cash Plans can typically offset the cost against their corporation tax bill. Generally, premiums are a tax-deductible business expense.
However, such plans are a P11D / benefit in kind. You’ll therefore need to pay employer’s National Insurance contributions on the benefit.
As it’s also a P11D / benefit in kind for employees, staff must pay additional tax as a result of having the policy as well. To achieve this, HMRC reduces a worker’s annual allowance — the amount they can earn before HMRC deducts tax — by the same amount as the premiums a company pays on their behalf.
We are an independent adviser with access to every leading UK provider. Below is a list of the main insurers we work with:
Each insurer has their own way of working so it is important to do your research. Price is often a driver but there are other things to consider, such as customer support and the speed of paying claims.
As mentioned, a scheme can slot in as a happy medium between having no health cover and comprehensive Private Medical Insurance.
EXPERT TIP 🤓
In some cases we have been able to help our clients by implementing a cash plan alongside their business health insurance. The cash plan can be used to cover a higher excess which can help reduce the overall cost.
Other options to build a rounded employee benefits package include:
Not every business has the time or expertise to set up and administer a benefits package for their staff.
When you choose Drewberry, we take all the heavy lifting off your desk. We’ll do what we’re best at — managing a great staff benefits package — so you can get on with doing what you’re best at: Delivering your own proposition.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.
The staff has been very knowledgeable and I have enjoyed working with Nadeem on setting up our plan.