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.”

The effects of alcohol abuse are hitting the workplace hard, so much so that a government committee has now made recommendations including introducing a minimum pricing scheme. The advice from the parliamentary health committee, if taken up, would mean that the government would set a minimum price for a unit of alcohol and could cause the cost of many drinks to increase. It’s a controversial idea which will not be met with open arms for the many people who like to have a drink in their own homes and those responsible drinkers will feel like they are being punished for the actions of others. But the fact is that alcohol abuse is now costing businesses £7.3bn every year, the majority of which comes from loss of productivity mainly from days taken off sick due to alcohol.


Despite these figures, alcohol related absences only make up between three to five percent of all absences taken from work, which could alarm some employers when they put into perspective that the eight to 14 million working days lost to alcohol is just a small proportion of the total. Many more working days are lost every year in the UK to other illnesses and one thing which employers can do to help reduce the effect of this to the productivity and efficiency of their own business is to take out a corporate private health insurance policy. This means that staff can avoid the longer waiting times of the NHS should they become ill and return to work in a quicker time than they would normally. There are many other benefits of providing private health cover for employees, which makes the small premiums seem a worthy investment for businesses.

The majority of the working population will be going back to work this week after the Christmas break, or are supposed to be at least. January is the worst month for people taking sick leave and according to some studies, between fifteen and thirty percent of those are not actually ill. Losing staff off to sickness is a huge cost to businesses in the UK, the CBI believes it could be up to £13.2 billion every year and could mean that some companies may consider taking out a private medical insurance policy for their employees to try and minimise the days they take off work. Despite the large number of people who notoriously ‘ring in sick’ when they might be nursing a hangover, can’t be bothered, or have somewhere else they would rather go, it seems there is also a lot of workers who are so dedicated they may be making themselves worse.

Over a third of people have in fact not taken a day off work when they are truly ill, according to research carried out by Bupa back in 2005. These employees may think they are being loyal but actually sometimes the best thing to do is stay at home and rest. If they don’t, they could make the illness worse and take longer to recover, even needing time off in the future for a longer amount of time than they would have had to take in the first instance, or pass it on to other staff. It’s a difficult balance to achieve, but one of the best things that employers can do to help both their workforce and the cost of illness to their business in terms of efficiency and productivity is to have corporate private health cover. By having access to the some of the best quality health services in the country, with shorter waiting times, staff can return to work in a quicker time than they might have normally.

Increasing numbers of people in the UK may be getting quotes for cash plan private medical insurance after a huge increase in premiums by the large traditional policy providers. Bupa, the biggest private health insurance company in the country, has increased its prices by 14 percent in the last two years, and similarly PPP Healthcare has upped its costs by 12 percent. This is simply too much for some people, especially with more and more redundancies and lay offs meaning that people do not have as much disposable expenditure as they used to. Cash plan private medical insurance is an excellent way for people to cut costs while still having a number of health benefits.


Over the past year the number of people in the UK who have a traditional private health insurance policy has fallen dramatically. Over 10 percent of people used to be covered, but this has dropped to just 6.3 percent according to research by Laing and Buisson. Cash plan private medical cover on the other hand has been booming recently, with the sale of policies increasing a massive 180 percent over the past 12 months. Companies as well as individuals are discovering the advantages of switching to this more affordable health insurance, with 14 percent of businesses in the UK now offering cash plan health cover for their staff. This can be seen especially among smaller businesses with over a quarter of those with less than 100 staff now providing cash plans for their employees.

Breaking the Mould - Why Not Try Health Insurance?

Research into the health insurance market has revealed that certain characteristics make a person more likely to be covered by a private medical insurance policy than others. The study, carried out by Besley, Hall and Preston, found that the typical policy holder is approximately middle aged, reasonably wealthy and a supporter of the Conservative party. But with cash plan medical insurance policies dropping traditional premiums by a significant amount, more people across the UK population should consider taking out a quote.

Many different factors were taken into account in the study including age, gender, occupational status, educational level and area of residence. The research found noticeable differences across the age spectrum. In 2001, only 2.7 per cent of the UK’s 16 to 24 year olds had private medical insurance in comparison to nearly eight per cent of 55 to 64 year olds – over triple the amount. Very competitive student health insurance is available for as little as £9.87 per month so this trend could easily change. Men are almost three times as likely to buy a health insurance policy than women, and double the amount of men than women are covered by employee health insurance as revealed in a study of BHPS statistics between 1996 and 2002. Despite this, women made up three quarters of those family members covered by an extended policy.

Other studies found that over four in ten of the richest members of society had private health cover compared to only 3.7 per cent of the poorest people. Education also made a difference. Those who had been through further education such as university were more likely to be policy-holders than those who had left school at sixteen. The percentage of the population with PMI also varied across the UK, with one in five of people in the south-east of the country having some sort of cover compared with only 6 per cent living in the north-east.

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.

Private medical insurance has a significant impact in helping employers attract new recruits

In a survey of 211 employers with a workforce of 675,000 people 68% of employers have highlighted private health insurance to be a useful in recruitment. Furthermore 63% agreed it improved employee motivation.

With a cost to employers of over £1 billion each year, four in ten companies now provide their whole workforce with private healthcare policies.

80% of employers believe the schemes have helped their employees returning to work more quickly after absence. Two thirds of these employers said the schemes improved performance of their staff who were suffering from a disease, illness or injury.

Corporate private medical insurance costs on average £506 per person per year. However, 61% of employers provide limited benefits to permanent employees and line managers and extend greater cover to directors and senior managers.

Source: Personnel Today