The staff benefit that also benefits you

Stress on the NHS. The word ‘stress’ has almost become synonymous with ‘NHS’ hasn’t it? It’s sad but it’s true. And it’s why private medical insurance is such a highly sought-after employee benefit. Afterall, shorter waiting lists and not having to play call-the-doctor-at-8am roulette are worth their weight in gold.  But private medical insurance isn’t just a meaningful benefit that helps you attract and retain good people, it’s also the quickest way to reduce employee absence and get people back to work quicker.

It’s no surprise then that it’s popular with employees and businesses owners. But here are a few things you might not know about Group Medical Insurance:

Health Insurance doesn’t have to cost your business anything

You can set up a voluntary scheme where individuals choose to opt-in and premiums are deducted from their salary. Or you can opt for a paid scheme where you pay premiums on behalf of your employees.

24-hour GP phone lines actually exist

Lots of group Private Medical policies offer a 24-hour GP or nurse-practitioner phone line. Just imagine if your employees never had to endure hours on hold to a doctor’s surgery only to find out all the slots have gone anyway. Plus, having out of hours GP access reduces the need for in-work-time doctor appointments.

Group premiums are cheaper than individual premiums

Group medical insurance premiums are generally lower than the equivalent individual policies because the risk is pooled across the group. And the more people that are covered, the lower the price per employee.

It’s possible to insure employees with existing medical conditions

Yes, you read that right. It’s possible to take out a Group Private Medical insurance policy on a ‘Medical History Disregarded’ basis. Which means employees are covered regardless of their health status (subject to the insurer’s terms and conditions), even if they’ve suffered from a condition in the past. For this option, insurers do require a minimum of 15 employees to be included on the policy though.

A group private medical policy reduces your corporation tax  

Private medical insurance is a benefit in kind so there are tax implications for your employees (benefits have to be specified on an employee’s P11D form and reported to HMRC). But group medical insurance is an allowable business expense, so you’ll pay less corporation tax.

Dental and eye-care cashback can offset employee benefit-in-kind costs

Lots of insurers offer dental and optometry cashback where the employee pays for treatment and then submits their claim on a portal to get some of the money back. Some insurers pay as much as 80% of the cost back (capped at a certain amount). But this regular cashback for regular dental and eyecare appointments can go a long way to offsetting the employee benefit-in-kind tax.

Frills and freebies are a distraction

In addition to quality cover, some insurers offer some great benefits like apple watches or discounts on fitness and nutrition. But it’s worth thinking about the reason you’re offering this policy to employees in the first place. Because long-term, the quality of the healthcare is more important than the short-term shiny things.

There are different types of underwriting

As well as ‘Medical History Disregarded’ policies can be underwritten on a ‘New Moratorium’ basis or ‘Full Medical’ basis. ‘New Mori’ underwriting is often used as a simpler alternative to ‘Full Medical’ because new starters can be added without completing any medical history. It’s worth noting that neither “New Mori” or “Full Medical” underwriting options will cover pre-existing conditions that have occurred or been treated for in the 5 years prior to joining. Insurers will consider cover for a pre-existing condition once an employee has been a member of the policy for two continuous years and in that time, have had a period of 24 consecutive months since joining that have been trouble free from that condition.

There are lots of ways to reduce the cost

You can tailor your Group Medical Insurance policy to suit your employees and your budget. You can add a per-person excess to reduce the premium. You can reduce outpatient costs. Or take off certain elements of the cover. The price will also depend on employee demographics. If you have younger employees, it’s worth including them on the policy as this can bring costs down.

Looking for queue-free medical care that benefits your employees as well as your business?

Call Vikki on 0118 923 5092