Contractor Health Insurance gives contractors access to private healthcare treatment paid for at least in part by an insurer.
Most plans cover inpatient and day-patient treatment in full.
Inpatient and day-patient treatment involves you occupying a hospital bed after a surgical procedure, either overnight (inpatient) or just for the day (day-patient).
The insurer will take care of all hospital costs associated with that stay, from accommodation fees to paying for the staff involved in your care.
The best Private Health Insurance plans will also cover outpatient treatment.
Outpatient treatment generally involves diagnostic tests / scans, as well as appointments where a bed isn’t needed, such as for physiotherapy.
There tends to be three ‘tiers’ of outpatient cover you can have on your policy:
Opting for inpatient-only cover without any outpatient treatment may be a cheaper option but it means you’ll have to rely on the NHS for outpatient appointments, potentially slowing down your diagnosis.
Adding outpatient cover to your policy means that your treatment can be taken care of privately following a referral from your NHS GP.
This includes all diagnostic tests and scans leading up to your private treatment.
As well as deciding whether you need outpatient cover as well as inpatient cover, there are a number of other policy options for you to choose from that will determine what your plan covers.
Your cover for certain therapies will depend on your provider.
Not every all Health Insurance policy automatically covers physiotherapy and similar therapies, such as chiropractic treatment and osteopathy, as standard.
On the other hand, some insurers may cover certain therapies under outpatient cover and will cover the cost for a fixed number of sessions if you add outpatient cover to your policy.
If your job requires you to spend time working abroad, then you may wish to opt for a Medical Insurance plan for that incorporates overseas cover. This will generally pay for much of your medical treatment if you fall ill overseas.
However, it’s another added extra to your policy and will come at additional cost. If you’re travelling abroad frequently for business it might be worth it, but this will ultimately depend on how cost-effective this will be for you over your other options.
Although not always on the top of the list for contractors, Contractor Health Insurance with psychiatric cover can be incredibly valuable, especially if you work in a high-stress environment.
However, few providers of Health Insurance for contractors will offer this as standard and it will generally have to be an added extra.
The National Health Service does a brilliant job, but resources are limited. An ongoing funding squeeze coupled with demographic pressures from an older, sicker population means the NHS is now under considerable strain.
As a result, many people decide they’d prefer to be treated privately, potentially saving time and offering far more choice when it comes to treatment options.
Contractor Health Insurance is designed to minimise disruption to your business by ensuring prompt diagnosis and treatment, reducing the time you have to spend away from work and getting you back up and running as soon as possible.
Health & Wellbeing Expert at Drewberry
Without Private Medical Insurance, you’ll still be eligible for treatment on the NHS.
Even with your own Contractor Health Insurance, some aspects of your treatment – such as emergency care and most likely GP appointments – will continue to be dealt with on the NHS, anyway.
However, NHS waiting lists are growing longer as the system comes under huge strain.
The cost of a Medical Insurance policy will not be the same for everyone. Premiums will change depending on your personal circumstances as well as the options you choose when taking out your policy.
Factor which will impact the cost of Health Insurance include:
To provide you with estimate costs we’ve researched all the major providers in the UK market and assumed the following to obtain pricing:
With these assumptions we have calculated pricing of a Mid-Range Health Insurance policy for different age groups as well as for individuals, couples and families.
Many people are concerned about the cost of Private Health Insurance and wonder whether they can afford it, but there are actually a range of options available that can help you stick to your budget.
The answer is technically yes – if you’re a contractor working through your own limited company then your business can pay for your Private Medical Insurance.
However, Health Insurance paid for by your company is considered a P11D benefit and you will be taxed as an individual accordingly on that benefit.
Speak to your accountant to ensure you’re aware of the tax implications of your company paying your Health Insurance premiums.
Your company can pay for Health Insurance for you and offset the cost of the premiums against corporation tax.
However, both you and your company will face other tax implications when paying for Medical Insurance through your business because the policy will be considered an employee benefit.
Your company will have to pay Employers’ National Insurance Contributions at 13.8% on the benefit.
Also, when Medical Insurance for contractors is paid for through a company, it’s considered a P11D or a benefit in kind, which means you as an individual will have to pay extra tax on the benefit you receive.
In comparison, if you pay for your Contractor Medical Insurance yourself then you do so out of post-tax income.
As it won’t then be considered a business expense or an employee benefit, there’s no other tax considerations to worry about.
Although Private Health Insurance is subject to Insurance Premium Tax at 12%, this is included in the premium and won’t be added on top.
Read our Health Insurance provider reviews to learn more about what the top UK insurers have to offer.
Aviva is the largest insurer in the UK. Aviva’s PMI offering is their Healthier Solutions product, which you can tailor to your own budget.
Based in Tunbridge Wells, AXA PPP Healthcare has helped people to access healthcare services since 1940.
Established over 60 years ago, Bupa is a UK household name. Bupa Health Insurance has two tiers of over: Comprehensive (full inpatient and outpatient care) and Treatment & Care (inpatient-only). Both options include mental health cover as standard.
Founded in 1927, Exeter Family Friendly is a mutual Friendly Society with over 60,000 members. The Exeter’s Health Insurance policy is known as The Exeter Health+.
Vitality (formerly PruHealth) launched in October 2004 as a joint venture between Prudential and South African health insurance provider Discovery. Vitality has an innovative approach to health insurance in their Vitality plan, rewarding you with points and reduced premiums for healthy living.
Many contractors want Health Insurance, recognising that it can be a valuable benefit that gets you back to work as quick as possible, but finding the best policy for them can be a minefield because of all the additional benefits and options that need to be considered. So why not ask an expert for help?
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.
If it is all getting a little confusing and you want to talk you through your options to make sure you find the most suitable cover please don’t hesitate to get in touch.
Pop us a call on 02074425880 or email email@example.com.
Head of Employee Benefits
Sam was very helpful and kept me informed at all times. Brilliant service.