Group Health Insurance grants your employees access to private healthcare treatment in the UK all paid for by an insurer. It enables them to bypass potentially long NHS waiting lists, getting them back on their feet quickly and speeding up their return to work.
We’re so fortunate to have the NHS in the UK. However, the reality is that the system is under strain. A funding squeeze coupled with greater demand has seen waiting lists rise.
Employee benefits are a huge plus for any company. This is especially true for Private Medical Insurance given just how keen staff are on it — it’s the most popular insurance benefit workers would like to see.
Providing staff access to private healthcare services can cut time spent off sick (potentially on reduced sick pay) by enabling them to bypass NHS waiting lists. They receive treatment promptly when they need it most.
Most Group Private Medical Insurance schemes now come with a digital GP service, offering phone or video GP appointments (usually 24 / 7) from the comfort of your own home.
Staff no longer need to wait for an NHS GP appointment. They also can be seen outside office hours, so they don’t need to miss work, take holiday or use unpaid leave.
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Read why Trailmix, the rapidly expanding mobile gaming start-up chose to set up Health Insurance for their employees.
It’s important to recognise that Private Medical Insurance is designed to supplement and complement the NHS rather than replacing it fully. It therefore doesn’t cover every medical need that may arise.
Medical treatment is broadly split into:
While outpatient cover is optional when setting up a policy (not having it cuts costs), relying on NHS outpatient care runs the risk of delaying private inpatient treatment.
To avoid this delay, employers can:
There are two broad types of medical conditions:
So, while a policy covers acute conditions, it won’t treat chronic conditions. The NHS will therefore continue to take care of conditions such as asthma and diabetes.
Most insurers have a number of standard exclusions which often include:
There are five main factors that decide the cost of a policy:
Below we’ve provided examples of the average cost of cover per employee for variously-sized businesses. To do so, we’ve made the following assumptions:
|Average cost per employee per month|
These premiums are for illustration only. The cost per employee depends on a wide array of factors. If you want to compare quotes from the top UK insurers call us on 02074425880 or email email@example.com.
There are a number of options you can choose which will impact the level of cover and the overall cost of a Business Health Insurance scheme.
Your underwriting impacts premiums and what your policy covers staff for. There are three main options, plus a fourth for switching insurers.
Full medical underwriting sees employees disclose their medical history. The insurer will likely exclude pre-existing conditions, but employees will know exactly which exclusions apply from the start.
This option is usually the cheapest because it excludes pre-existing conditions upfront. However, as employees must declare all medical history, there’s usually lots of paperwork.
Moratorium underwriting requires much less initial information. It sees a condition excluded if, at the start of the policy, the employee has suffered from it in the past 5 years.
Employees don’t need to make any medical disclosures upfront. Instead, at claims stage the insurer checks their medical history to make sure that condition hasn’t occurred during a period where it would be disqualified.
MHD underwriting is the best Medical Insurance underwriting. It ignores pre-existing conditions, no matter when an employee had them.
It’s the most expensive underwriting because it’s so comprehensive. It’s also only available to larger groups, usually of at least 20+ people.
Lastly, you use switch or continuing personal medical exclusions (CPME) underwriting to move from one insurer to another.
This ensures any conditions a worker has had treatment for under a previous Group Health Insurance plan should continue to be covered with the new insurer.
Employers usually pay for employees’ Private Medical Insurance from pre-tax earnings. HMRC typically treats premiums as a business expense.
For staff, employer Medical Insurance is a P11D taxable benefit in kind, so they pay additional tax on this cover.
As an employer, you’ll need to fill out a P11D form declaring that you’ve provided staff with a benefit in kind. You’ll also usually need to pay employer’s National Insurance on the premiums as well.
There are four main providers in the market. Each offers very different policies and pricing structures:
In addition to the core cover all of the leading providers now provide a video GP service. Other benefits also include counselling helplines, wellbeing services and high street discounts.
Being an independent adviser we work with all the leading insurers in the UK. Given our scale and expertise we are in a great position to negotiate the best deal for your business.
If you are looking at health insurance to cover staff abroad there are other international providers including Cigna, Aetna and Allianz which we would consider when comparing quotes and providing recommendations.
Firstly, it’s one of the most popular employee benefits and therefore goes a long way towards promoting goodwill among your employees.
Secondly, it forms a valuable cornerstone to any employee benefits package. Other benefits you might look at include:
Not everyone has the time or expertise to do the heavy lifting to implement this type of wellbeing scheme. We have the knowledge, expert advisers and whole-of-market access to ensure you get the best premiums.
Letting us do the heavy lifting means you can focus on what you’re best at: Delivering your own proposition.
We started Drewberry because we were tired of being treated like a number.
We all deserve first class service when it comes to employee benefits. Below are just a few reasons why it makes sense to talk to us.
If you need help setting up group private medical insurance give us a call on 02074425880 or email firstname.lastname@example.org.
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