Medical History Disregarded (MHD) Business Health Insurance

How Does MHD Health Insurance Work?

All Private Medical Insurance policies cover a range of acute conditions. Acute conditions are curable through treatment. For example, a joint requiring a replacement is an acute condition, as it can be ‘fixed’ via surgery. Another example is cataract removal. Others include:

• Broken bones
• Appendix surgery
• Hernias

However, there are some pre-existing conditions providers won’t cover unless the right type of underwriting is applied. This is where Medical History Disregarded (MHD) comes in. It doesn’t place any criteria or exclusions on any pre-existing health conditions an employee has.

Let’s say one of your workers has suffered from a serious illness in the past. Full Medical Underwriting would exclude that illness from their policy, so if they suffered from it again they wouldn’t be covered for it.

Alternatively, Moratorium would exclude it for a set period of time. Medical History Disregarded on the other hand, would cover your employee regardless of their pre-existing health condition.

What Does Medical History Disregarded Cover?

Unlike Moratorium and Full Medical Underwriting, the key benefit is its inclusivity. All employees receive comprehensive coverage, even for pre-existing medical conditions.

Group Health Insurance policies, however it’s underwritten, will only cover acute conditions. Even though Medical History Disregarded policies cover pre-existing issues, it’s only those that are acute.

If an employee has asthma (a chronic condition), this won’t be covered under the policy, even with MHD underwriting. But if they were experiencing joint pain, for example, the policy can cover treatment for that.

What Doesn’t MHD Underwriting Cover?

What Medical History Disregarded doesn’t cover isn’t exclusive to this underwriting. As mentioned above, no underwriting will cover chronic conditions.

It’s also important to note, across all Private Health Insurance policies, there will be standard exclusions, just like other insurance products. These standard exclusions below apply to everyone. It doesn’t matter their age, pre-existing health status, or their location.

• Routine pregnancy
• Emergency care (the NHS is there for that)
• Cosmetic surgery that isn’t medically necessary
• Health issues relating to alcohol or drug abuse
• Self-inflicted injuries caused by dangerous sports or hobbies
• Kidney dialysis
• HIV / AIDs.

Who Is Eligible For This Type Of Underwriting?

Medical History Disregarded is only available for Group Health Insurance schemes. It’s not offered by insurers to people buying a personal policy for themselves.

For your business to be eligible for MHD, you must have at least 20 employees. If you’re a small business with fewer than 20 employees, there are alternatives: FMU and Moratorium. We’ll explain these in more detail later.

To put it simply, Medical History Disregarded underwriting covers any eligible acute condition. As the insurer doesn’t need to see any of your employee’s medical records, it’s straightforward to set up.

If an employee makes a claim for an eligible condition, the insurer will cover the medical costs.

Joseph Toft
Senior Employee Benefits Consultant

What Are The Benefits Of A Medical History Disregarded Health Insurance Scheme?

There are many valuable benefits of Medical History Disregarded for both you, the employer, and your employees. This includes:

Covers Pre-Existing Conditions

We’ve talked a lot about this, but it’s what makes Medical History Disregarded underwriting valuable to staff.

When your group scheme is underwritten on this basis, staff are covered for every eligible acute condition that could arise.

If they were to buy an individual policy (underwritten on a moratorium or full medical basis), they might not be eligible for much cover. With Company Health Insurance, staff get health cover they might not have been eligible for otherwise.

The fact it will cover an employee’s existing condition is a key factor. It allows everyone, no matter their health, to receive full cover from their employer.

Leo Sykes
Senior Employee Benefits Consultant

Supports Company Hiring Success

Medical History Disregarded not only supports your employees’ health and wellbeing, it also looks good from a recruitment point of view.

It’s praised for its inclusivity, enabling every member of staff to have medical cover. When you consider that they can’t buy their own PMI without facing exclusions, MHD opens up eligibility to all.

As a valuable employee benefit, your company can attract a wider talent pool. It guarantees coverage for those with prior health issues. This goes to show potential hires that as their employer, you care about your employees.

Maintain Employee Confidentiality

Another aspect of Medical History Disregarded is how it helps a company maintain confidentiality. Not one of your employees has to disclose their medical record to you or the insurer when you set up a group scheme.

Less Admin Involved

Off the back of confidentiality, MHD doesn’t require any health declaration, so the admin to set up a policy decreases. Unlike FMU, where staff share their medical notes, there aren’t any lengthy forms to complete.

This is also beneficial when an employee makes a claim. The claims process becomes easier, as the insurer won’t need to examine an employee’s health. With other underwriting, it can take time to collect the information they need. They may even need to contact an individual’s GP for evidence, which can be time-consuming.

The Disadvantages Of A Medical History Disregarded Health Plan

We’ve explained the key advantages of Medical History Disregarded, but it’s important to highlight the disadvantages too. There are a few downsides to consider, such as:

Most Expensive Underwriting

Medical History Disregarded is the most expensive underwriting option available. If you choose this for your Group Health Insurance, you should expect to see high premiums. This is because there are no exclusions placed on any employee, increasing the likelihood of a claim.

Hard To Switch Insurers

If you want to switch policy providers, MHD makes this difficult. Each insurer may have a different underwriting process with different terms and conditions.

Although it’s possible to switch providers, it’s important to note that it might not be a smooth switch. You might find your new insurer won’t underwrite on a Medical History Disregarded basis.

In complex situations like this, it’s always best to speak to an expert. At Drewberry™, our team of advisers handles these kinds of enquiries every day. We’re here to help set up employee benefits for your workforce, so get in touch by calling 02074425880. You can also email help@drewberry.co.uk.

Only Available To Larger Companies

Medical History Disregarded is only available to companies buying Group Health Insurance for over 20 employees. For a smaller business, it’s not an option. Here, your group scheme will be underwritten on a moratorium or full medical basis.

For a smaller company, a group scheme runs the risk of excluding employees with pre-existing health issues. While this can’t be avoided due to the size of the business, Group Health Insurance is still a valuable benefit.

Matthew Brown
Employee Benefits Consultant

How Much Does Company Health Insurance With Medical History Disregarded Underwriting Cost?

Medical History Disregarded underwriting is the most expensive option out there. The cost of Business Health Insurance depends on your company specifics, e.g. the age of your employees, how many are in the scheme and the policy options.

With Medical History Disregarded, employees can essentially claim for everything. This means the risk to the insurer increases.

Higher risk health, such as mental health issues and the various types of cancer, can be costly to an insurer. As Medical History Disregarded doesn’t require employees to disclose their medical records, it makes it harder for insurers to mitigate risk. Premiums are higher under this underwriting basis than others as a result.

Example Costs

To help you understand how Medical History Disregarded underwriting can impact the cost of Group Health Insurance, we’ve provided example costs below. This is based on:

• An accountancy firm
• 15 employees
• Average age 40.

Is MHD Underwriting Right For Your Company?

Medical History Disregarded is the best type of underwriting for Group Health policies. But is it the right option for your company and employees?

Medical History Disregarded is a hassle-free way of providing comprehensive cover, as your employees don’t need to share their medical history. As long as your company can afford it (it’s the most expensive), it’s a great choice for your group policy.

Ultimately, whether MHD is the ‘best’ underwriting for your business depends on your specific needs. What we can say for sure is that it’s the best for offering the highest level of cover. However, it’s always best to speak to an expert.

How Does MHD Differ From Other Underwriting Options?

We’ve mentioned underwriting alternatives if you have fewer than 20 employees. Each type is different, so it’s key to understand how they differ from one another.

Moratorium

Moratorium underwriting is the most common type. Your employees do not need to disclose their full medical record.

Instead, insurers will typically exclude any condition an employee has suffered from in the past 5 years. This could be something minor, such as shoulder surgery, which would result in an exclusion for any treatment related to this issue for a specified amount of years.

It doesn’t matter the severity of the condition, it’ll be a risk under Moratorium and face exclusion. There is the possibility of removing the exclusion later down the line. This is only if the policyholder has gone 2 years on the policy without receiving medical advice or care for the condition.

Full Medical Underwriting (FMU)

If your Company Health Insurance policy is underwritten on a full medical basis, every employee will have to disclose their medical history. This information is collected via a medical questionnaire, which can be further followed up with evidence from a GP.

Using this information, the insurer will then decide what is covered. FMU means any condition suffered at any point before the start of the policy will be excluded.

Continued Personal Medical Exclusions (CPME)

This is used for existing Private Medical Insurance plans when a policyholder wants to switch providers. Continued personal medical exclusions mean the new insurer is obliged to provide the same level of cover as the first policy. This includes any pre-existing conditions that have previously been covered. It enables people to switch insurance providers without losing any of their coverage.

Sometimes underwriting can be complex, but luckily, we’ve got years of experience in setting up group schemes.

If you’d like our advice on whether Medical History Disregarded is right for you, please contact us. Call us on 02074425880 or email help@drewberry.co.uk.

Nadeem Farid
Head of Health & Wellbeing Benefits

Need Help With Your MHD Health Insurance Scheme? Get Expert Advice

We know firsthand from working with many UK businesses that underwriting can be confusing. There are several options when you set up a Group Health Insurance policy. And it’s important to remember each one serves a different purpose.

It’s important to get the underwriting right for your group scheme, otherwise it may affect what an employee can claim for. If you’d like advice on the best underwriting type for your company, get in touch. We can talk more about Medical History Disregarded and whether it’s suitable for your workforce. Call us on 02074425880 or email help@drewberry.co.uk.

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.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3768 and growing independent client reviews rating us at 4.92 / 5
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.