Private healthcare options for your workforce

Since the COVID-19 pandemic, employers are  now a little more conscious of the need to look after the physical and mental wellbeing of their employees. So in a change from our usual pension-related stories, we are taking a look at the subject of  private medical insurance along with other healthcare options  for business.

We are grateful to Peter Shaw, managing director of Gemini Health and Protection, for his contribution to this feature. With over 25 years working in the healthcare sector and supported by his team of experts, Peter is well-placed to partner with MHM and our clients in this increasingly complex area of insurance.

Introduction

With the National Health Service (NHS) under constant pressure from all sides, it is no surprise that Private Medical Insurance (PMI) is  more popular than ever, with over six million people in the UK now covered on either personal policies for themselves and their families or through their employers on corporate schemes.

It is particularly attractive for the self-employed, small business owners and senior executives who know that a long period of absence due to illness or injury could be disastrous for their business strategy. There are, however, cost-effective solutions available for all types of businesses  and their employees.

What is PMI?

PMI is designed to facilitate medical treatment privately, avoiding delays through the NHS in securing treatment for a range of acute, treatable medical conditions. Subject to having the right policy, it allows you to have your treatment when you want it, perhaps to fit in with work or school schedules and, often, with your choice of hospital and/or consultant.

The NHS would continue to treat accident and emergency cases, as there are virtually no such facilities within the private sector. There will also be some policy exclusions;  examples of which may include normal pregnancy, drug abuse, alcohol abuse, self-inflicted injuries, chronic long-term illness and cosmetic surgery.

What options are available?

Medical insurance plans do not guarantee to pay all the bills for treatment, they simply guarantee to pay up to the limits of the cover in your policy. You can  choose a claims excess, the same as  car or home insurance, to reduce the premiums if you agree to pay an initial contribution towards the cost of any claim.

Another cost-saving option is to choose a plan with a “six-week option”.  This generally means that, if your in-patient treatment is available on the NHS within six weeks of seeing your consultant, your plan does not come into operation and no claim on the policy is needed.

Are existing medical conditions excluded?

Most policies will exclude any pre-existing conditions either permanently or for a given period. This will depend on your budget and the type of underwriting you choose from. These include

Moratorium – probably the most popular option, where claims relating to any pre-existing conditions are excluded for a period of time and you must also be free of any symptoms for a period before a claim will be admitted.

Full medical underwriting – the conditions applying to your policy will be agreed on consideration of your medical history, which you will be asked to disclose to the insurance company at the outset.

Medical history disregarded – the most expensive option, where any previous health problems are ignored and treatment is available to the full extent of the policy.

Sounds expensive, what are the alternatives?

A typical comprehensive policy with £100 excess, using an established insurer, would cost a 25-year-old person, from under £60 per month.  The same policy for a 40-year-old on family cover would cost around £150 per month. Corporate policies with 20 or more individuals covered would expect a discount.

If your budget can’t stretch to PMI due to other commitments, another option, which is becoming more and more popular, is a cash plan.

For a very small amount per month, you can get cash benefits for NHS or private treatment for dental and optical care,  chiropody and physiotherapy, for example.

For individuals, a typical cash plan starts from under £10 per month and offers a range of benefits including hospital in-patient benefit, specialist consultations and maternity benefit.

A similar scheme for small groups and businesses starts at just £5 per month per person and includes face-to-face counselling for  stress and bereavements. If the employer pays the premium, it could be taxable as a benefit-in-kind but is still a very affordable way to protect your employees.

Want to know more?

From private individuals to small businesses and large corporations, there is likely to be a private healthcare policy to meet your needs and budget. To discuss the options and obtain a free, no obligation quotation, please contact:

David Hodgson, MHM Pension Services T: 01423 229029 E: david.hodgson@sandccarsalesharrogate.co.uk

Peter Shaw, Gemini Health & Protection T: 0161 790 5963 E: peter@geminihap.com

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