Whilst this is a very attractive employee benefit it is a much more expensive benefit than Group Life, even though you still benefit from the economy of scale making this a much more cost effective than individual plans. At the end of this section we illustrate a way in which an employer can give their staff the benefit of this cover at a significantly lower cost, but at no additional cost to the employer.
PMI is not only perceived as a key benefit to employees, it can also help reduce sickness related absenteeism. This is because they can avoid NHS waiting lists and receive the appropriate treatment more quickly. This is a valuable benefit to employees and enhances the message that you are a caring company that considers their wellbeing to be paramount. There are many different providers in this market and a variety of ways of setting this up dependent on the features required and the budget available. Any cost to the employer is treated as an ‘Allowable Business Expense’ by HM Revenue and Customs, though it is a Benefit in Kind as far as the employee is concerned and so will be taxed as income normally via a tax code change.
You may think that the cost of this benefit is not affordable to the business, particularly if you are a relatively new growing business. But there is a way of providing access to this benefit at no cost to you, whilst still providing all your staff with access to a Private Healthcare at a heavily discounted rate. This is because simply by establishing and administering a Group scheme you can ensure they all benefit from the economies of scale. This could mean they save over half the cost compared to an individual plan. The employee simply pays for their plan, via payroll deductions. So whilst you are not paying towards the cost directly, simply by facilitating the scheme, every employee can benefit from low cost private healthcare.
Hospital Cash Plans
Hospital Cash Plans are different than Group PMI in that rather than provide hospital treatment directly; they provide money towards the cost of hospital treatment you may require. It is generally less costly than private health and is perhaps more of an add-on to NHS care, than an alternative. It will generally pay a percentage of the total cost (e.g. 75%). It is not PMI however, so if an employee has expensive private treatment, the cash plan may only provide partial cost of that treatment. Another and increasingly more common use of these plans it to use them alongside and in connection with a Group PMI plan. It works like this; the excess on the Group PMI is set to the maximum level of the Hospital Cash Plans. This keeps the cost of the Group PMI down, reduces the overall impact of smaller claims on the schemes renewal premium and ensures that between the two your employees have a fully comprehensive Healthcare package with zero excess. The other key benefit of a Hospital Cash Plans is that dental and optical expenses can also be included.
To obtain a quotation or for further information about Healthcare benefits, please contact us by clicking this link: HEALTHCARE
Please note, we strictly adhere to the Data Protections Act and of all its guidance. All data provided will therefore be treated in the strictest confidence. To obtain Group Life quotations for your workforce, we do not require the names or specific personal details of your employees apart from dates of birth.