Corporate Medical Insurance is a highly-valued employee benefit that provides private healthcare treatment for your employees when they need it the most. In fact, it’s the insurance policy workers would most like to see their company introduce.
If an employee falls ill the corporate health insurance will provide them with access to private clinics, hospitals and consultants at a time convenient to them so they can receive the best possible treatment.
By utilising the company paid private healthcare your employees get to bypass potentially long NHS waiting lists and get the required treatment faster helping them to get back on their feet quicker.
What Does Corporate Medical Insurance Cover?
Comprehensive Health Insurance, the option many larger corporations choose, includes both inpatient and outpatient cover. It therefore generally covers:
- Tests and scans (e.g. x-rays, CT and MRI scans)
- Hospital stays
- Therapies (e.g. physiotherapy, osteopathy etc.)
- Exclusive drugs not available on the NHS due to cost
- Alternative therapies (e.g. acupuncture).
Most policies and private facilities will offer benefits such as:
- Choice of consultants and specialists
- Flexible visiting hours
- Much shorter waiting times for treatment
- Appointment times tailored to suit an employee’s schedule.
Many of the top UK corporate health insurance providers now include some really valuable additional benefits that employees and employers alike are hugely grateful for.
Virtual GP & Other Support Services
Most Corporate Health Insurance policies offer a number of additional workplace wellbeing benefits which now include a digital GP service, usually via a smartphone app.
We have had some great feedback on how valuable this has been for many employees, it gives staff access to video and / or telephone GP appointments, usually 24 / 7, from the comfort of their own home.
Historically, you had to wait for an NHS GP referral to access private treatment. Now, however, remote GP services can make referrals for private treatment under the Health Insurance scheme if necessary.
Read here how our director utilised our Virtual GP service and how easy he found it to use.
In addition to the GP service some also provide a bolt-on prescription service as well as other everyday wellbeing benefits such as counselling helplines and high street discounts.
We helped gaming company Trailmix implement a AXA corporate scheme, click here to read how their staff are really benefiting from the Doctor@Hand service →
Working Alongside NHS Services
Corporate Medical Insurance treats acute conditions. These are conditions that will improve with treatment (e.g. joint pain treated by having a hip replacement).
As good as private healthcare is it doesn’t cover chronic conditions (for example those that don’t get better with time and remain with you for life, such as diabetes). For chronic conditions, employees will continue to use the NHS.
There are a number of general exclusions you’ll find in most Private Health Insurance policies include:
- Emergency care
- Kidney dialysis
- Fertility treatment
- Standard pregnancy and childbirth (may be covered for complications)
- Treatment or rehabilitation for alcoholism / substance abuse
- Cosmetic surgery that is not medically necessary.
Why Is Corporate Health Insurance Important?
The NHS does a fantastic job, but a funding squeeze has limited the amount of cash available even as demand for UK healthcare spikes. As a result, the NHS is under significant and sustained pressure.
For instance, at the end of June 2020, NHS statistics reveal 3.86 million people on NHS waiting lists in England awaiting treatment. Almost half of such patients had been waiting at least 18 weeks.
For employers, providing Corporate Health Insurance as part of an impressive employee benefits package can:
- Attract new employees
- Improve employee retention and engagement
- Reduce stress and staff absenteeism.
Happy, grateful and above all healthy employees tend to be more productive.
How Much Will Corporate Medical Insurance Cost Per Employee?
The cost of will vary between businesses because it’s partly based on employee demographics. Factors which impact the cost of cover include:
- Employees’ ages
- Postcode(s) staff are normally based in for work
- The underwriting you’re planning to choose
- Policy options you want to add.
Below we’ve provided examples of the average cost of premiums per employee for different sized businesses. To provide these examples we’ve had to make a number of assumptions about the level of cover. For instance, we’ve assumed:
- There is a £1,000 outpatient cap
- There’s a £100 excess on the policy
- There is a mid-tier hospital list.
These premiums are a guideline only — the cost could be different depending on your needs and circumstances.
We are a regulated independent insurance broker with a team of expert advisers on hand to help you compare corporate health insurance quotes from all the leading UK providers.
If you need some help pop us a call on 02074425880 or email email@example.com
Corporate Health Cash Plan: A Cheaper Alternative
Corporate Health Insurance is a highly valued benefit however it is not always an affordable option to provide to all staff.
A business with a tighter budget might want to consider a Corporate Health Cash Plan, which is significantly cheaper but still provides really valuable everyday healthcare support.
A corporate health cash plan provides a cash reimbursement for every day healthcare costs, for example dental check-ups, physiotherapy and eye tests.
6 Ways To Reduce The Cost Of Corporate Health Insurance
You have a number of options when arranging Private Medical Insurance for your employees. Each will impact the overall cost of the cover.
Choose how much outpatient cover your staff receive. Your options are:
- Full cover, where all eligible treatment is covered
- A capped policy, where outpatient treatment is limited, say to £1,000 per year
- A basic inpatient-only policy, where staff aren’t entitled to any outpatient care.
Naturally the less outpatient cover you provide the lower the cost of cover.
Excesses typically start at £100. The larger your excess, the more staff will have to pay towards their treatment but the cheaper premiums will be.
Adding an excess can help reduce unnecessary or trivial claims which end up increasing the overall cost of your cover.
Mental Health Cover
Every year the UK loses £70 billion as a result of mental health issues, making access to quality mental healthcare vital.
Many firms are choosing to include mental health cover with their corporate health insurance given the focus on employee wellbeing. This additional option can be expensive though and one you may wish to scale back if your budget is limited.
Dental and Optical Cover
Most plans cover surgical procedures such as cataract and wisdom tooth removal. However, a policy usually won’t cover routine optical and dental care, such as the cost of check-ups, fillings, new glasses etc.
This option expands your Health Insurance to cover such routine care.
If you wish to include a level of dental cover you may also want to consider a standalone policy which could be more cost effective.
6 Week NHS Wait
It means staff can only claim if the NHS waiting list for the inpatient treatment they need exceeds 6 weeks. If not, they’ll use the NHS.
This option can significantly cut the cost of premiums.
Cover for Family Members
You have the option to add employees’ families. The business can pay for this or you can ask the individual worker to pay.
Including family members may be beneficial as it could reduce the amount of time employees are absent while caring for ill family members.
Underwriting Corporate Medical Insurance
You have three underwriting options, plus a fourth if you’re looking to move between providers. Each is different and will determine just what staff can claim for based on their pre-existing conditions.
- Full medical underwriting (FMU) requires upfront disclosures of employees’ medical history. Once the insurer has this information, it usually excludes pre-existing conditions.
- Moratorium underwriting requires far less initial administration. Any condition the employee has had in the 5 years leading up to the policy start date will be excluded. Moratorium tends to be the most popular option.
- Medical history disregarded underwriting is the best available on the UK market. Available to groups of at least 20-25 members, it ignores any pre-existing conditions, no matter when your staff suffered from them. Employees can therefore claim for any eligible condition under the policy’s terms.
- Switch or Continuing Personal Medical Exclusions (CPME) can be used if you have an existing scheme and want to switch providers. It ensures that the new insurer will cover any pre-existing conditions which the old policy covered.
How Does HMRC Tax It?
Private healthcare benefits are usually an allowable business expense against your corporation tax bill.
For employees, corporate health insurance is a P11D / taxable benefit in kind.
As such, HMRC levies tax against premiums by reducing employees’ annual income tax allowance by the same amount of the premiums paid on their behalf, meaning staff can earn less before becoming subject to tax.
As an employer, you’ll need to fill out a P11D form to declare to HMRC that you’ve provided your employees with a benefit in kind and pay employer’s National Insurance on the premiums.
Is Corporate Health Insurance a P11D Benefit for Employees?
Yes, Corporate Health Insurance is a P11D / benefit in kind. This means there’s additional tax to pay on the employee’s part as a result of having the cover.
This is usually achieved through a HMRC adjustment to your tax code which reduces the amount you can earn before tax kicks in (this is known as your personal allowance) to the equivalent cost of the premiums each year.
How is Corporate Health Insurance different to a Health Cash Plan?
Corporate Health Insurance is designed to pay for the treatment of acute medical conditions in a private hospital setting. You get to choose the facilities you’re seen in and the specialists you visit.
It’s there to pay for faster access to healthcare than the NHS can provide in many cases for problems that are treatable, such as joint pain requiring joint replacement, cancer care, a tonsillectomy, cataract removal or cardiac bypass surgery. This is opposed to chronic conditions that are only manageable, such as arthritis, asthma and diabetes, which aren’t covered.
A Corporate Health Cash Plan, on the other hand, is there to reimburse you for the cost of everyday health expenses, such as optician and dentist visits.
To use dental treatment as an example, you visit the dentist, have your treatment and pay for it. You then keep the receipt and send this off to the insurer with your completed claims form. The insurer will then reimburse you up to the limit per policy year for that type of treatment.
Will The Scheme Cover Overseas Travel?
Most corporate health insurance schemes have the option to cover a level of overseas travel.
Some providers offer a set number of days per policy year while others have bolt on travel option which works in much the same way as a separate group travel insurance policy.
If you have a number of employees stationed overseas then it might be worth considering a group international health insurance policy.
Who Are the Best UK Corporate Health Insurance Providers in 2022?
As independent insurance experts we work with all the top UK providers. When it comes to corporate healthcare there are four main providers with a number of other smaller niche insurers:
Each insurer is different and which one is right for your company and your staff depends on your circumstances.
Our job is to make sure you get the most appropriate cover for your business and your employees at the most competitive price.
We are often able to negotiate better terms than you dealing direct with an insurer and we do a full market review each year to make sure you always have the best terms.
Top Additional Benefits
Since the pandemic many insurers have expanded their range of tangible everyday benefits which now often include:
- 24/7 Virtual GP & Prescription Service
- Counselling Helpline
- Physiotherapy and Nutritional Support
- High Street Discounts.
These benefits help ensure your company paid health insurance is utilised on a regular basis providing tangible value beyond the payment of claims.
Compare Corporate Medical Insurance Quotes & Get Expert Advice
It takes time and expertise to set-up the most suitable corporate scheme for a large group of people. Many firms simply don’t have the resources in house to manage this and choose to work with an expert.
Out team of experts work with every UK leading insurers and compare quotes from all of them. We also understand all the terms and conditions and have processes in place to make reviewing the market as hassle-free as possible.
Why Speak to Us?
We started Drewberry™ because we were tired of being treated like a number.
We all deserve a first class service 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.
If you need help setting up corporate medical insurance please don’t hesitate to call us on 02074425880 or email firstname.lastname@example.org.