What is Group Private Medical Insurance?
Whilst there is no denying that the NHS is a wonderful thing, due to over-use many treatments can take time to organise and have carried out, which can put huge financial strain on someone if they are off work until they have their required treatment.
One way that you can look to counteract this is by adding preventative measures to support your staff during absence. Business Health Insurance is one of the solutions available to you.
Company Medical Insurance plans are available for the treatment of acute conditions, which are conditions that are curable and respond well to treatment.
Why do I need Group Private Medical Insurance?
If we consider the the main reason to implement this benefit is that it can help to ensure that your staff receive the quickest and best care possible at a time when they need it most.
Not only will this limit the time that they are in pain or discomfort, but it will also ensure that they are back to work as soon as they can.
Your employees are cared for, but of course this has the added benefit that you won’t lose too much time due to staff absences.
It is vital as a business owner, you ensure your company is providing an enhanced employee benefit package in comparison to your competitors, this will ensure that you attract and retain the best talent.
How much will it cost?
First, we need to consider the cost to your business if group health insurance is in place. As all small business owners are aware, any long-term absence is going to have a significant impact to your business.
In the 2016 absence management survey report, it was identified that sickness absence costs businesses an average of £522 per year for each employee.
Before considering the premium cost of having private medical insurance, it is always worth sitting down and reviewing the pricing impact of not having the policy in place.
Actual premiums for the policy will vary depending on several factors such as:
What the companies industry is, where the employees are based, average age of your workforce, how much benefit you choose, optional extras, underwriting, whether medical history is being disregarded or taken into account, if psychiatrist conditions are being included, amongst a number of other factors.
As with all insurances, it isn’t one size fits all and the policy will be tailored to your company’s need. It may be that you are only looking to cover senior employees or staff who have met a minimum service requirement. It is these additional factors that can also significantly impact the price quoted.
In a recent case study for a London based firm in the creative industry, with 5 members of staff between the ages of 25-50 the premium per employee was between £805 and £1332.
Currently for the policies we hold across our two businesses, the average premium per employee is £400-£700.
If you are currently shopping around for a new scheme, looking to move broker, or simply wanting to benchmark your existing arrangement, then we suggest contacting a specialist broker instead of going to an insurer direct, or equally as unsound; using a general or non-specific insurance broker or financial adviser.
We can review the full market for you to ensure you’re getting the policy that’s right for your company. The premium will remain the same whether using an employee benefits broker or not.
Is Group Private Medical Insurance Taxable?
We often see many business health insurance policies mis-sold due to businesses being mis-advised on tax matters by financial advisers claiming to be tax experts.
Under current tax rules from HMRC, we can see that Business Health Insurance is usually considered to be an allowable business expense. When it comes to doing your books at the end of the year, your company should receive tax relief on the premiums.
What most brokers overlook is the tax implications for employees which is a dangerous mistake to make because the insurance paid by the employer is considered a P11d taxable benefit in kind by HMRC.
Employers will have to declare to HMRC any benefits which have been given to employees and complete a P11d form.
Employees need to be made aware that they are liable for the tax on this benefit and it will be deducted from their tax-free allowance.
When we have taken over existing schemes from other brokers, we regularly find employees have not been made aware of this when the benefit plan was implemented.
Hooray Health & Protection can help advise and signpost communications to ensure employees are aware of this liability, so that your business is fully compliant.
We must stress, Hooray are health and protection specialists with an understanding of tax matters which we have shared to help grow the industry and educate Clients. We suggest our clients consultant with an accountant or tax specialist if they require advice.
Are there added value services?
Usually staff medical insurance policies have the most added value services to choose from out of all the employee benefits, but the majority do come at an additional cost.
Business health insurance perks that are available with most insurers include:
- Employee Assistance Programmes
- Virtual GP
- Second Medical Opinion
- Fast track appointments
- Health screening
- Discounted gym membership
When arranging your group medical insurance, make sure you disclose with your broker what other employee benefit insurances you have in place.
If your company has group income protection or group life insurance, then you need to consider free added value service’s that may be including in these before paying again with private medical insurance.
Lets face it, the last thing you want, is to be paying for a service that is free and included with another benefit you have in place.
Which added value services that we recommend will be dependent on your companies’ profile, which we will review for you and tailor to those needs.
If considering business health insurance, then ensure you speak to an expert instead of going to an insurer direct as they can review the whole market for you, without impacting the cost you’re already paying.
Why choose Hooray Health and Protection?
Hooray Health & Protection are a broker specialising in the SME employee benefit marketplace and as such know which insurers will be the best fit for your company.
We understand each business is unique and will take an in-depth fact find to understand what your business requirements are and only recommend what’s right for you.
Both our non-executive directors have held senior roles for two of the leading health insurance providers and have leveraged their knowledge to ensure the best proposition for our Clients.