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How much is health insurance for employees?

How Much Is Health Insurance For Employees?

… It depends on who’s paying! There are two main ways that businesses can make health insurance available to employees:

#1 A business can buy Group Health Insurance and cover employees themselves


#2 An employee can purchase health insurance through the company as a voluntary benefit

In the first scenario, the employee doesn’t have to pay a penny, but in the second case, they shell out for it themselves – albeit at a reduced rate to what they would pay outside of the business.

There are so many factors influencing the overall cost of health insurance and in this article we’ll reveal what they are, plus give an estimate of what you might expect to pay as an industry average.


Want to know how much health insurance will be for YOUR employees? Arrange a call with one of our friendly advisors and we’ll be happy to talk you through your options FREE of charge and FREE of contract. Contact us on 01273 222805 or click on the bottom right chat box.

What factors affect the cost of health insurance for employees?

When initially estimating the costs of your health insurance plan, we look at the various factors specific to your organisation alongside the level of cover you want.

Key factors include:

  • Employee group size: The more staff, the higher the premium, but the lower the costs are going to be per worker
  • Employees’ ages: Costs will rise if insuring older staff members as they are considered more likely to be making claims
  • Health profile of workforce: Your employees’ medical history can also affect the cost of the premium.
  • Location of company/staff: Cost of healthcare around the UK can vary massively, for example London hospitals will be among the most expensive.
  • Occupation: The type of work your staff perform will impact the premium, for example office workers will be considered a safer proposition than scaffolders as the latter are more at risk of injury
  • Depth of coverage: All policies will cover the standard inpatient treatments but all insurers offer optional add-ons, leading to a higher premium (or visa-a-versa to make premiums lower)
  • Choice of insurer: Each insurer will offer a different price point, but the features of the health policy will also vary making a straightforward comparison almost impossible

In other words, there is no short answer to the question “How much is health insurance for employees?”!

But for a rough idea, data from NimbleFins revealed the average cost of health insurance for small businesses was £45/month per employee or £540/year.


SEVEN ways to keep those costs down!

Business Health Insurance is well-known for being one of the pricier benefits, but it is also one of the most sought after. Landing on the right policy could be game-changing for your staff and business.

Here are some ways to keep those costs down whilst reaping the benefits of a Group Health Insurance plan.

Raise the excess to lower the premium:

  • The excess is the amount staff/business pays towards an insurance claim – the higher the excess paid, the lower the initial cost of premiums
  • Raising the excess is usually a smart option for businesses with lower likelihood of claims

The Six-week NHS rule:

  • A rule that can be included where staff will be seen privately only if the NHS is unable to treat them within six weeks
  • It’s been known to reduce a company’s premiums by 25%!

The eligibility criteria:

  • Businesses can set conditions to determine which employees have access to the scheme
  • For example, all employees must be at the company for a minimum period of time before being included in the scheme

Paid annually:

  • A lot of insurers offer discounts for annual payments rather than monthly

Find a broker to help:

  • Independent brokers will be working for the best interests of you and your business, rather than an insurance partner
  • They will find the best valued quotes in the industry tailored to your business needs
  • Broker services are free of charge – so no extra costs incurred!

Reduce the level of cover:

  • Most insurers will offer different levels/tiers of coverage to suit different business sizes and industries
  • Be selective with what is included in the plan, and only select what you need in line with your budget and employee need

Reduce any unnecessary extras:

  • Most insurers, similar to the point above, will offer extra add-ons to a policy e.g., Employee Assistance Programmes, physiotherapy, gym discounts etc.
  • Cutting these back can lower the price
  • Remember to calculate the money saved versus the value of those lost extra services

For more money saving tips: 12 ways to save money on small business health insurance

The friendly brokers at Hooray love to help businesses keep their costs downs. Get quotes tailored to your business and have all your questions answered by our advisors. Simply use the chatbox on the right or call 01273 222805.


How much will it cost your business NOT to have health insurance?

Rather than single-mindedly focusing on the cost of buying it (though very important!), it’s always worthwhile taking a moment to review the business costs of not having health insurance. By this we mean how long-term absences, staff turnover, burn out levels, or presenteeism can have impact on the bottom line.

There is no one-size-fits all policy, or pricing, when it comes to Group Health insurance. What’s important is that the policy is tailored to your needs in such a way that it achieves the best possible value for your business.


Get health insurance quotes for your employees

Enlisting the help of an independent insurance broker is the best way to ensure you get the most accurate – and best value – quotes.

Hooray offers FREE advice and quotes to start-ups and SMEs looking to launch their employee benefits or review current health insurance policies already in place. We gather quotes from across the whole UK health insurance market to ensure the best policy ends up in your hands. We don’t have cosy ‘exclusive’ tie-ins with any one insurer!

Embarking on your employee benefits and health insurance journey can be confusing, but we love to make it simple.

Get the most competitive quotes for your business. Contact us at [email protected] or call 01273 222805 for FREE no-obligation advice and support.

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