What is a Business Health Cash Plan?
A health cash plan is a type of insurance through which businesses can support the routine health needs of their employees. It usually includes things like: medical consultations, dentistry, eye care and physiotherapy.
It differs from Business Health Insurance (and Private Health Insurance generally) which can cover operations, hospital stays and serious health problems, such as heart attacks and cancers. A health cash plan only covers everyday health needs, not urgent care.
Policy terms vary depending on the insurance provider and the specific deal they’re offering, so it’s important to look at what’s included and excluded. Not all health cash plans are the same!
How does a Health Cash Plan work?
There are two main types of policy: individual and group plan. Individual, as the name suggests, is simply a case of one person buying the policy for themselves (and perhaps their partner or child) while a group plan is purchased by businesses to cover their staff.
It works like other types of health insurance. You pay a fixed sum each month to the insurer which then allows to you to claim on the medical assistance outlined in the policy. You can choose to provide full cover or you can choose to cover part of the cost (essentially giving your staff discounted medical care). Offering full cover will make the insurance policy more expensive, but the upshot will be a happy (and healthy!) team.
Another option, is to offer a cash plan as a “voluntary benefit”. This means that the employee can choose to purchase the insurance via payroll. This is usually offered as part of a wider voluntary benefits scheme.
Need help working out if a cash plan is right for your small business? Contact the team at Hooray Health & Protection for friendly independent advice.
What does it cover?
One of the major benefits of a health cash plan is that it will often cover pre-existing conditions too (though again, you’ll need to check the policy). As such you can usually avoid full medical background checks as required in other health insurance policies. This means all your staff are treated equally under the policy regardless of their medical history.
The type of healthcare you can access in a health cash plan may include:
- Dental check-ups
- Dental treatments
- Health checks/screenings
- Hearing aids
This is not an exhaustive list and an insurer may choose to include other routine health checks and treatments. Often insurance providers will add health and wellbeing apps or online portals to provide further advice and assistance to those covered by the policy.
What are the pros and cons of a health cash plan?
A business health cash plan provides the following advantages:
- You can avoid the usual medical background checks and provide some form of coverage to the whole team without having to discriminate against those with a more complicated medical history.
- It’s easier to implement than a business health insurance plan – which will require background checks and a more complicated set of terms and conditions.
- Often it’s the routine health issues that people need help with. Everyone benefits from regular dental appointments and eye checks.
- Routine health check-ups can help avoid more serious conditions developing in the future.
- You can tailor it to the needs of your business and employees – ensuring it’s going to offer genuine use.
- It’s an effective way of looking after you employees wellbeing and showing you care.
Drawbacks of a cash plan include:
- It’s restricted in what it can offer – a more comprehensive policy with a longer list of medical coverage can be found in a Business Health Insurance policy.
- Only worthwhile if your employees are going to make use of it (this emphasises the importance of communicating its value to employees and consulting them before instigating a policy).
- If your staff can already afford routine health checks and treatments, the policy may not be valued by employees nor provide any true worth to the company.
Hooray Health & Protection provides expert advice for small businesses looking for health insurance. If you need help finding the right insurance policy, ask our team today. We’ll be delighted to help!
How do I get a business health cash plan?
All the major UK health insurance providers offer health cash plans, including: Aviva, Bupa, Health Shield, Medicash and Simply Health.
There are two ways you can go about getting a deal for your business: navigate the market by yourself or employ a health insurance broker.
Small business owners often find it difficult to access company-wide health insurance schemes. Insurance companies are often reluctant to provide for small teams, as they want to focus their insurance products on large businesses with big teams and big spending power.
You might have trouble accessing any kind of deal as a small business owner, let alone a good one. A further problem is this: you might not know what a good deal looks like.
Speaking to different insurers and comparing the market takes time and plenty of head scratching. There are so many different add-ons and exceptions, it becomes interminable difficult to calculate. That is of course, unless you know the market well.
The benefit of employing a specialist small business health insurance broker like Hooray Health & Protection is that we do all the work for you. We take away all the endless researching and weighing up the pros and cons of different schemes. We know the industry inside out. We have existing relationships with all the different insurance providers and are experienced in negotiating health cash plans for small businesses like yours.
Here’s something you might not know: we can get deals that aren’t available on the market. After all, as expert in the field we know the market. And the insurers understand that too.
If you’d like to pick our brains on business cash plans, give us a call or use the chatbox on the right!
Frequently Asked Questions about Business Health Cash Plan
How do insurance claims work?
If you receive a treatment that is covered by the insurance, all of the associated costs will be reimbursed by the insurer, usually within less than seven working days.
Should I get a Business Health Cash Plan or Business Health Insurance?
Business Health Insurance provides more value, but Business Health Cash Plans can be great for small businesses who may not be able to afford insurance, offering a wide range of health benefits.
How long do the policies cover employees for?
Businesses usually renew their health cash plans annually, to get the most competitive prices, but policies can be purchased that last for longer periods.
Can I decide which additional benefits to include?
Though there are many fixed products on the market, the terms of the policies are usually highly flexible, allowing business owners to include as many as they feel adequate.