Millions of people in the UK are lucky enough to be covered by a private medical insurance (PMI) policy provided by their employer. These are great, not only for the workforce by having access to some of the best healthcare facilities in the country and being able to beat often long waiting times of the NHS for treatment, but for less obvious reasons for the company too. Over three quarters of British workers believe that their employer should be responsible for their healthcare as it is where they spend the majority of their time, and most businesses both big and small recognise the importance of providing benefits like private medical insurance to their staff. Not only do staff feel more loyal to the company, it also attracts a higher calibre of candidate to any job vacancy in the first instance. Employees are also more likely to return to work in a quicker time should they become ill by being treated in the most convenient place and time to them.


Not everyone is covered by a corporate private insurance policy however. It is an attractive option to most people, and the traditional view that premiums are expensive and unaffordable can put people off enquiring into a quote for private health cover. But more cost effective private health insurance like the cash plan policies provided by Freedom Healthnet have made the peace of mind that comes with PMI available to even the lowest budgets. These can even be highly beneficial to those people who are self employed and are looking to cut costs where they can.

Some private medical insurance providers are beginning to encourage their client’s employees to consider being treated in an NHS hospital rather than making full use of their private health insurance cover. Staff are being offered £200 a night to use the NHS for their treatment rather than going into a private hospital. The BBC is reported to be involved in such a scheme, although a spokesperson has denied it, because they have been inundated with senior staff who are claiming on their corporate health insurance policy for a stay in a private clinic that could cost up to £1,000 per night. Offering a cash incentive is one way in which companies like this are trying to cut costs on their private health cover. Another option for businesses is to compare other types of policy with their current one and considering swapping to a cheaper alternative. Cash plan private health insurance is one of the cheapest ways of providing this valued benefit to employees.


Private medical insurance providers, like Freedom Healthnet, have been recognising the importance of giving people the option to use the NHS if they wish for years. Cash plan policies in particular have found that the choice that people get from being given a cash lump sum to cover all or part of the cost of their treatment is an advantage. This means that people can choose whether they would prefer to be treated in a private hospital, in a clinic abroad or in an NHS centre if they so wish. This may be the most convenient option for some people if the hospital is closest to their home for example and then the policy holder can use the money to help cover other costs incurred as a result of the illness, such as having to take a day off work or travel costs.

Large business in the UK are still valuing the benefits of having private medical insurance for their staff but may be considering cutting down their level of cover to keep employees happy. Recession hit workers are having to pay the P11D tax on their benefits and those on lower incomes are finding this difficult. Rather than cancelling their cover altogether, many companies still want to keep their private health insurance because they recognise the importance of looking after their employees and the return in productivity and efficiency that comes about from doing so. So now it seems that employers might be considering to switching to a policy that has a much lower premium, not just to save themselves money but also the amount of tax their staff are having to pay.


One way they can save money is to change from a traditional level of cover to a cash plan policy which are renowned for providing good benefits but at a much lower cost. Other ways of saving money includes altering the excess amount, and even some more unusual methods. Gareth Ashley-Jones at Aon Consulting told employeebenefits.co.uk, "Clients are asking for more creative solutions, with some structuring PMI with different excess levels. Employees who choose a high excess can reduce the premium and therefore the tax. Many employees do not need the 'full monty' plan. It is a big expense for someone on a low salary. Employers can also reduce costs by using options such as six-week plans, where private treatment is paid for only if the NHS cannot carry it out within six weeks."

Cash plan private medical insurance has been taken up by increasing numbers of employers. In 2006, corporate health insurance accounted for 8 percent of the market, but in 2008 this had risen to 13 percent according to Mintel. A report by Laing and Buisson found that the number of cash plans provided by companies increased 29 percent in 2008, bringing the total to 378,000. Stephen Duff, deputy chief executive at HSF told All Business, “When company finances are tight a health cash plan voluntary scheme doesn't cost the company anything. And it gives employees the opportunity to buy a cash plan at the corporate rate instead of the consumer rate, which is around 40% more.”


These figures prove that businesses in the UK are recognising the many benefits of having private health cover for their staff. Greater efficiency is just one of these, as staff who become ill can be treated in a shorter time and therefore return to work more quickly than what they might have done being treated on the NHS. By offering private health insurance for employees, companies can even attract higher calibre of staff and have a higher quality production as a result. Loyalty amongst employees is also something that comes about as a result of providing private health cover. The Laing and Buisson research also found that 88 percent of people who have a cash plan policy value the core benefits, so this could make it an even more worthwhile investment. Stephen Duff says that people can often put off going for medical checks because of money worries. “However, when they have budgeted for their health through a cash plan they go for more regular check-ups, which means that they are less frequently off sick, which is better for them and therefore for their company.”

Increasing numbers of businesses are turning to corporate cash plan health insurance policies in order to save money, as the costs of traditional private medical insurance become too expensive for many in times of recession. Nearly one in four businesses has said that the main reason for not using traditional private health insurance policies is that the rising costs of healthcare is pushing up the cost of premiums. According to a survey by HSA, this means that more and more companies are looking at cheaper options, like cash plan private medical cover. 

“It is hardly surprising that companies are increasingly choosing budget health plans for their workforce, and health cash plans are a simple and affordable option,” HSA’s Abby Bowman told Health Insurance and Protection Magazine.

Despite their growing popularity, some confusion seems to be arising among employees surrounding the health benefits provided by their employers, and it’s all because they simply aren’t giving them enough information. The success of a corporate health insurance policy depends on the level of communication between the private medical insurance provider and the employer, in order for the employer to pass on the information to their workforce. 

Freedom Healthnet provides easy to read information about all its policies, helping the third of employees who are currently unsatisfied with the amount of advice they are given about their health to feel happier and more at ease. Corporate cash plan health insurance is also an important way for companies, “to cover their duty of care and health and safety obligations,” said sales and marketing director Russ Piper, when also speaking to Health Insurance and Protection Magazine.

Money has become tight for many people in the UK over the past six months, with increasing food, gas and electricity bills causing problems for some. Experts are giving advice here, there and everywhere on how to decrease spending, whether through buying supermarket own brand products, or using energy-saving light bulbs. Now it seems that there are ways that you can save on your private medical insurance too, by being part of a corporate health insurance policy.

If your company already offers private health cover as a benefit to its employees, you should be able to get a much more competitive quote as an individual. The bigger your company is, the better, as the overall cost is dependant upon how many people are covered by the policy. It is worth researching into a company before you commit to working for them as a job is not always just about the wage packet.

Another way to make your quote for private medical insurance cheaper is by taking it out when you are young and more healthy. This way, you are not only less likely to have to make a claim but with access to top quality healthcare and check-ups you may be less prone to serious illness as you get older. Cash plan private health insurance can also save you money, as well as giving you the option to choose where and when you undertake your treatment, choosing a time and place that is convenient to you.

Four in ten workers in the UK think their employers should provide them with private healthcare through a corporate health insurance policy. These figures come from the latest study by BUPA, which found private health cover came second only to pensions, in a list of employee concerns regarding their job.  Having a comfortable retirement fund was a top priority for just marginally more people at forty nine per cent, halving the difference between the two benefits from the previous year. Health is clearly becoming increasingly important for employees, with gym membership and wellness assessments also resulting high in the research. As well as this, businesses are now being encouraged by the Government to provide support for their staff as advised in the Department for Work and Pensions’ 'Review of the Health of the Working Population.' It seems that there is not a better time to get a quote for corporate medical insurance.

For three in four of all employees who would like to see private medical insurance among their job benefits, cleanliness of hospitals is the main worry. This is closely followed by wanting to avoid waiting lists, in particular for specialist treatment. Bupa’s Ann Greenwood told The Fair Investment Company, "The rising popularity of workplace health benefits, particularly PMI, reflects changing attitudes to personal healthcare. People are now keen to have more control of their healthcare options rather than leaving them to chance." 

Freedom Healthnet’s corporate health insurance policies offer such a degree of control. Employees can receive treatment in a time and place convenient to them, whether it be closer to work or home. They can be cared for in a top quality private clinic, visit their local NHS hospital or travel abroad if they wish. It’s not only workers that will benefit from a better state of health, but companies could save a significant amount of money by losing fewer days each year to sickness. In 2005, British companies lost £13 billion simply as a result of sickness. 

Three new flu strains are on their way to the UK this winter, and companies are being warned to offer vaccinations for the virus to their staff to avoid major disruptions. The new strains - A/Brisbane/59/2007 (H1N1)-like virus, A/Brisbane/10/2007 (H3N2)-like virus and B/Florida/4/2006-like virus can effectively be prevented with a simple inoculation that employers can access through their corporate health insurance. Flu is often compared to the common cold, but the illness can cause major upsets in the workplace with most people taking a week off. Even when they return, the virus leaves people very weak and production will undoubtedly be reduced. Businesses in the UK already lose millions of pounds each year due to sickness and these new strains of flu will only add to this, but the vaccination, which is effective in an estimated 70 to 90 per cent of adults, could significantly improve this.

Peter Mace is the assistant medical director at BUPA Wellness. He told Easier Finance, “Flu is one of the major reasons for short-term sickness among UK workers, and we recommend that even individuals who have received flu vaccinations previously should still be given the new vaccine to ensure they are protected from the three new strains. Any previous vaccines will not be effective in protecting against the new strains." By taking out a corporate private medical insurance policy, not only will employees have access to the new vaccine, but they will also be able to receive health care at a time and place convenient to them, should they become ill and return to work as soon as possible.

Corporate health insurance has many benefits for both the employer and employee, the most important of which must be losing less days to sickness each year through a generally healthier workforce. There are, however, many misconceptions about group health insurance policies that may put bosses off from investing in something that can be very worthwhile for their businesses.
One of the most common mistakes is that managers believe all health insurance policies cost the same. In fact, cost varies according to many factors, such as the general age and size of the workforce as well as the type of health cover. Cash plan medical insurance policies, like those offered by Freedom Healthnet, can work out to be more cost effective than traditional plans, and give more choice to the employee as to where they would like to receive their treatment. Many people also believe that they will have to go through the hassle of getting a referral, but in fact most health insurance companies are based on an open access system and require no referral at all.

Some business owners are led to think that they will have to use a broker in order to get the best deal for them, but this can be expensive and unnecessary. Quotes for private medical insurance are easily available online, as well as all the information a company will need to help them decide if that particular level of cover is well suited to their needs. If advice is needed, however, independent brokers are available to help for little or no cost. On the other hand, some corporations think they know everything that there is to know about private medical insurance when in fact they are missing out on vital knowledge that could save them a lot of money. The industry is constantly changing and it can be hard to keep up with the latest information, as well as running a business. It is worthwhile enquiring into latest issues and quotes regularly and taking advice from independent brokers to ensure that your company’s group health cover is both cost efficient and gives the most relevant benefits.

Corporate health insurance has many benefits to both the employer and employee, most importantly losing less days to sickness each year through a generally healthier workforce. There are however many misconceptions about group health insurance policies that may put bosses off from investing in something that can be very worthwhile for their businesses.

One of the most common mistakes is that managers believe all health insurance policies cost the same. This of course varies according to many factors, such as the general age and size of the workforce as well as the type of health cover. Cash plan medical insurance policies, like those offered by Freedom Healthnet, can work out more cost effective than traditional plans and give more choice to the employee as to where they would like to receive their treatment. Many people also believe that they will have to go through the hassle of getting a referral, but in fact most health insurance companies are based on an open access system and require no referral at all.

Some business owners are led to think that they will have to use a broker in order to get the best deal for them, but this can be expensive and unnecessary. Quotes for private medical insurance are easily available online as well as all the information a company will need to help them decide if that particular level of cover is well suited to their needs. If advice is needed, independent brokers are available to help for little or no cost. On the other hand, some corporations think they know everything that there is to know about private medical insurance when in fact they are missing out on vital knowledge that could save them a lot of money. The industry is constantly changing and it is hard to keep up with the latest information with a busy business to run. It is worthwhile enquiring into a new quote regularly and taking advice from independent brokers to ensure that the company’s group health cover is both cost efficient and gives the most relevant benefits.

Following on from the Employee Health Benefits Exhibition, the ABI discussed the ideas around employee medical insurance at their Health Conference earlier this month.

Health and Safety has ensured that the number of workplace injuries continues to fall, year on year, which is excellent news for both employees and employers. However, one issue which continues to affect employers is absenteeism due to illness. With 28 million days per year lost due to illness and 7 million days still lost due to injury, this is a serious problem for businessess. Absence from work costs employers a staggering £13 billion per year and an additional £13 billion paid in incapacity benefits by the government / the taxpayer.

The government is endeavouring to address these issues from their end, including advising small and medium sized businesses, but the medical insurance industry has a vital role to play in alleviating the above situation. 10 million workers in the UK are currently being covered through helath insurance and income protection insurance and every year more than £3 billion is paid out to meet healthcare needs and to replace lost income.

Medical and Health Insurance is increasingly offered by companies who wish to reduce the amount of time taken off work by their employees due to sickness or injury. It is seen as a perk or benefit by the employees who appreciate the fact that their employers are investing in their health. Additionally, employee medical insurance can be extended to include family cover - offering peace of mind as their loved ones will receive prompt treatment in the unfortunate event of illness, without having to suffer the delays of the NHS.

Employers may put an end to health screenings and medical check-ups due to new income tax regulations, according to Employee Benefits & Health Insurance Magazine.

The warning follows an amendment to the Income Tax (Exemption of Minor Benefits) Regulations 2002, introduced by HM Revenue and Customs (HMRC).

It states that health screenings will only be exempt from tax if they are available to all employees and medical check-ups must also be available to all staff, or those who are identified in a screening as requiring one.

Adrian Norris, managing director of Buck Consultants (Healthcare) told the industry publication, Health Insurance magazine, the amendment was a “bombshell”. He says extending screenings to all employees would create enormous costs for businesses.

He said: “Questions need to be asked about what the objective was behind the regulations, health screening is commonly described as executive screening because the majority of organisations only buy it for their senior staff as an executive benefit. HMRC seems to be operating in its own world and making its own judgments about how benefits and tax fit together.”

Chris Evans, head of health and risk development at PIFC Consulting, also told the magazine the regulations appear to be a “crude attempt” to encourage businesses to offer health screenings to all of their employees.

He suggested that the amendment could mean many employers will cut the services if they believe the tax burden outweighs the benefits.

But Dudley Lusted, head of corporate healthcare development at AXA PPP healthcare, said that it is not clear if all staff have to be given the same level of health screenings for them to be tax exempt.

He suggested that employers could offer cheaper screenings to all of their staff and more extensive screenings to their executive employees.

Furthermore, he said that not everyone would have to actually undergo the screening but it must be available to all staff or employers will face a tax charge.
He told Health Insurance magazine: “Unless the employer is willing to pay this tax, there will be a reduction in the number of employees taking up the benefit.”

We are delighted to announce that the winner of the bottle of Champagne raffled at the Employee Benefits Exhibition is Karen Potter of The Hood Group, Essex. Karen visited Rob and Paul on the stand at the show, where they were chatting with people about the health insurance benefits provided by Freedom Healthnet's Company Medical Insurance - including the possibility of being treated abroad, if they prefered!

Karen is being sent a bottle of Veuve Cliquot Ponsardin in a cheeky little Veuve jacket forthwith! Congratulations Karen - it was lovely to meet you!