Corporate Health Cash Plan

What Are The Benefits Of A Health Cash Plan?

Providing a Health Cash Plan is a great intermediary between no health cover at all and full Private Medical Insurance (PMI). And there are plenty of benefits for both you and your employees.

Benefits For Employers

A Health Cash Plan is a more affordable employee benefit. Some cost as little as £5 per month, per employee. To compare, Group Health Insurance could cost a business with 50 workers £35 per month, per employee. Other benefits include:

• Helps to reduce absenteeism
• Provides access to healthcare
• Creates a healthier, productive team
• Improves employer to employee relations as a result of high value benefits
• Supports staff physically and financially
• Adds a competitive edge during recruitment
• Improves company retention rates.

Benefits for Employees

Cost is a major factor in people delaying essential healthcare. By providing your team with a Business Health Cash Plan, you can help them to get the treatment they need, sooner. Other benefits include:

• Increased value
  Staff may feel more valued and appreciated by their employer knowing they actively support their wellbeing
• No initial costs for cover
  While staff will have to pay upfront for any eligible treatment they have, it’s the employer who sets up the benefit and pays for the cover. So there’s no initial cost for employees to get access to the Health Cash Plan
• More affordable dental treatment
  The British Dental Association revealed that 25% of patients delay or forgo NHS dental treatment due to cost. A Business Health Cash Plan can help to support staff cover these costs and get dental care when they need it
• Financial support towards optical services
  Many people put off getting an eye test because of the cost of glasses, despite vision changes. A Company Health Cash Plan can offer monetary support
• Lower price prescriptions
  1 in 10 people have skipped necessary medication due to the cost of prescriptions in the UK. If your policy offers this benefit, staff can get their money back up to a specified limit
• Support for musculoskeletal issues
  Staff can skip long NHS waiting lists if they need healthcare relating to a musculoskeletal affliction, such as back pain. These issues were one of the top reasons for sickness absence in 2022.

What Do Group Health Cash Plans Cover?

What a Company Health Plan covers will depend on the level of service you set up for your team. Most UK Health Cash Plan providers offer tiers of cover. These determine the monetary amount staff can claim back for eligible treatment.

In most cases, Company Health Cash Plans cover pre-existing conditions, so employees won’t need to undergo any medical background checks in order to enjoy this benefit.

Each provider will differ in terms of what they offer. But as an example, here’s what Medicash offers:

Health Cash Plans and Health Insurance policies are not the same. In fact, you can have both at the same time. Health Cash Plans work alongside the NHS, as there are certain types of healthcare, such as dentistry, which are not provided for free by the NHS.

Corporate Health Cash Plan Vs Company Health Insurance

It’s easy to confuse Company Health Cash Plans and Group Health Insurance, as both offer health benefits. Here are the main differences between them:

• A Corporate Health Cash Plan aims to help staff out with their everyday healthcare needs. This can be routine appointments, such as dental check ups and eye tests, as and when the employee needs it. I can be an affordable way to offer health support to employees
• Company Health Insurance is more comprehensive and covers treatment of acute conditions. It can cover the entire treatment process, from diagnostic tests and scans, to inpatient care. It’s generally more costly.

Let’s break it down in more detail:

How Does A Company Health Cash Plan Fit Into An Employee Benefits Package?

A Corporate Health Cash Plan can slot into your company’s Employee Benefits package as a happy medium between no health coverage and full cover.

So, you’ve got the healthcare side of things covered. What other benefits help to create a well-rounded package for your team?

• Death In Service Insurance
  Death In Service pays a lump sum equivalent to a multiple of an employee’s salary if they pass away while under contract with your company
• Group Income Protection
  Also known as Group Sick Pay Insurance, it pays out a proportion of your workers’ wages if they can’t work due to accident or sickness. It works alongside and complements your company’s sick pay policy
• Group Critical Illness Insurance
  Critical Illness Cover pays out a lump sum to your staff should they become critically ill with an illness listed in the policy. The most common claims are for cancer, heart attacks and strokes.

Using It To Cover Private Medical Insurance Excess

In some cases, we’ve been able to help clients set up a Business Cash Plan alongside their Company Health Insurance.

It might seem like jumping through hoops using one benefit to support another. But Health Cash Plans can be used to cover an excess on a Medical Insurance policy. This can help to reduce the cost of PMI, which otherwise may not have been an affordable option for your company.

Business Health Cash Plans and Health Insurance policies are not the same. In fact, you can have both at the same time. Your employees can then use both services to supplement the NHS (as there are certain types of healthcare, such as dentistry, which are not readily available on the NHS).

Value-Added Services

Another good thing about Company Health Cash Plans is they often come with a variety of extra benefits that your employees can use, even when they’re not claiming for health treatment. These services can include: 

• Support helplines
• Counselling
• Health screenings
• Virtual GP access
• Mental health support
• Hearing tests.

When comparing Business Health Cash Plans, you’ll see the variety of benefits and options available to you. Each provider will have a benefit table detailing what treatments your employees are eligible to claim back costs for. Make sure to check what your chosen level of cover includes.

How Much Do Employee Health Cash Plans Cost?

How much you’ll pay for a Corporate Health Cash Plan varies. It’s dependent on your business and employees. Even so, it’s a relatively affordable employee benefit. Some schemes charge as little as £1 a week for the most basic coverage.

The price of your Business Health Cash Plan will depend on:

• How old your employees are
• How many people you require cover for
• The level of cover.

While the age of your staff is a contributing factor, it’s not the most influential one. The price per employee is more dependent on how much cover you intend to offer them. This differs from Private Medical Insurance, which tends to consider age and health specifically.

To give you a rough idea of prices, we’ve provided two examples below for different clients wanting cover for their staff.

How Does HMRC Tax A Business Health Cash Plan?

As with most employee benefits, there’s always the question of tax. For Corporate Health Cash Plans, HMRC views them as a P11D / Benefit in Kind. Due to this, you, the employer, will have to pay National Insurance Contributions on the benefit.

The good news? By providing your workforce with a Business Health Cash Plan, you can offset the premiums against your company corporation tax. You’ll receive a lower tax bill. This is because HMRC views the costs as a tax-deductible business expense.

As it’s a P11D / Benefit in Kind, your employees are liable for additional tax. HMRC will reduce their annual allowance—the amount they can earn before tax—by the same amount as the premiums paid on their behalf.

For example, if your business pays £5 a month per employee, the employee will pay Income Tax on that £5 payment. For a basic taxpayer paying 20% Income Tax, the employee will pay £1 tax on the benefit.

Who Are The Best UK Corporate Health Cash Plan Providers In 2023?

The best Company Health Cash Plan is the one that costs the least but offers the highest amount of coverage. But you also need to find a service that’s right for your business needs.

Here at Drewberry™, we’re an independent Employee Benefits consultancy. We’ve got exclusive access to all leading UK Health Cash Plan providers. These are the main insurers we work with:

• Bupa
• Healthshield
• Medicash
• SimplyHealth
• Westfield Health.

Each provider is different, so it’s important to research your options when setting up a Health Cash Plan. Price is often a key factor for businesses, but it’s always good to check other elements, such as customer support and the claims process.

Compare Group Health Cash Plan Quotes And Get Expert Advice

There’s a lot to think about when it comes to running a business. And sometimes that results in little time to think about your employee benefits package.

That’s where we come in. When you work with Drewberry, we take all the heavy lifting off your desk. Our team of expert advisers set up and manage everything on your behalf. Leaving you with more time to focus on what matters, and stay ahead of the competition. 

Our team of experts live and breathe employee benefits, and they’re ready to chat about your unique needs. For fee-free advice and access to the most competitive products, give us a call on 02074425880 or email us at help@drewberry.co.uk.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3900 and growing independent client reviews rating us at 4.92 / 5
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.