Corporate Health Insurance

How Does Corporate Health Insurance Work?

Corporate Health Insurance cover works in the same way as personal Private Health Insurance. The main difference being that the employer pays for the premiums on behalf of their staff.

You’ll be responsible for setting up the policy and choosing the level of cover for your employees. Premiums are calculated per employee and paid either monthly or annually.

Corporate Medical Insurance isn’t a mandatory benefit in the UK, so it’s up to you whether you set up a policy or not.

Will Employees Still Need To Use The NHS?

The simple answer is yes. Even the most comprehensive healthcare policy, whether corporate or personal, will never fully replace the NHS. Your employees would still need to rely on it for things such as emergencies, routine pregnancies, chronic conditions and depending on the level of cover you opt for, diagnostic tests. We’ll explain this in more detail below.

Inpatient vs Outpatient Cover

Any medical care your employees need is categorised as Inpatient or Outpatient. It doesn’t matter if care is received privately or via the NHS, all treatment falls into one:

• Inpatient / Day-Patient
  Covered in full on all policies, this is treatment which requires a hospital bed. This can be overnight or just for the day, including surgical procedures
• Outpatient
  Outpatient care is the opposite. This covers treatment which doesn’t need the use of a hospital bed. Diagnostic tests and scans, for example, are outpatient procedures.

All Corporate Health Insurance policies will cover Inpatient treatment, however outpatient cover is an optional extra that can be added for an additional cost.

Different Levels of Outpatient Cover

When it comes to adding Outpatient Cover—it’s not all-or-nothing. There are varying levels you can add depending on your budget. With a policy you can choose to have:

• No outpatient cover
  Staff use the NHS for diagnostic tests and scans before private inpatient treatment
• Limited outpatient cover
  A mid-range option which caps outpatient care typically to £1,000 per employee, per policy year
• Full outpatient cover
  Covers all outpatient treatment in full.

What Does Corporate Health Insurance Cover?

How much cover your employees get depends on the policy options you choose. As mentioned above, all policies include inpatient and day-patient care as standard, covering:

• Tests, scans, and consultations (e.g. x-rays, CT and MRI scans)
• Surgeries
• Hospital stays
• Therapies (e.g. physiotherapy, osteopathy etc.)
• Exclusive drugs not available on the NHS due to cost
• Alternative therapies (e.g. acupuncture).

Alongside these, most policies also offer:

• Choice of consultants and specialists
• Flexible visiting hours
• Shorter waiting times for treatment
• Appointment times tailored to suit an employee’s schedule.

Providing some level of outpatient care speeds up the diagnosis process. It’s one of the biggest benefits of private healthcare.

The sooner an employee knows what’s wrong, the quicker they can get the care they need. This may help to reduce sickness absence in the workplace.

Nadeem Farid
Head of Health & Wellbeing Benefits

Acute Vs. Chronic Conditions

Corporate Health Insurance, no matter which insurer you buy a policy from, only covers acute conditions. If an employee suffers from a chronic issue, they will use the NHS for ongoing care and treatment.

Acute and chronic conditions are categorised as:

• Chronic conditions
  These are incurable conditions that need long-term medication or treatment. For example, asthma and diabetes
• Acute conditions
  Meanwhile, acute conditions are treatable, and patients typically recover after treatment. An employee with joint pain requiring a replacement, for example.

Cancer Care

All Corporate Health Insurance policies in the UK include full Cancer Care as standard. Since cancer is a prevalent health issue, this aspect of a policy is one of the most valuable.

Employees can access cutting-edge cancer treatment and medications through a company policy. This tends to include drugs and procedures not provided via the NHS due to the cost barrier.

As it’s included for no extra fee, staff can get some of the very best healthcare if diagnosed with cancer, including:

• Options to receive chemotherapy at home rather than a clinical setting
• Cover for the cost of wigs and prostheses needed as a result of cancer treatment / surgery
• Access to counselling for the employee and their family
• Cash to pay for scalp cooling to reduce chemotherapy hair loss
• Donations to a hospice should an employee need to stay in one for palliative care
• Access to home nursing for a set number of days.

Some insurers offer a ‘NHS Cash Benefit’, which pays out if the NHS is used instead of private facilities. For example, Bupa offers £100 per night for NHS inpatient radiotherapy, chemotherapy, or cancer surgeries.

For the extensive cancer cover alone, Corporate Health Insurance is hugely valuable.

What Isn’t Covered By Corporate Health Insurance?

All Corporate Health Insurance policies have standard exclusions that apply to all policyholders. The insurer won’t cover:

• Pre-existing conditions (depending on the underwriting)
• Emergency care
• Kidney dialysis
• Fertility treatment and routine pregnancy care
• Issues related to alcohol or substance abuse
• Cosmetic surgery which isn’t medically necessary
• Accidents sustained from dangerous sports / hobbies.

Underwriting Your Corporate Health Insurance

When setting up Corporate Health Insurance, there are 3 underwriting options for new policies. Though, there is another option if a policy is being switched to a new provider.

Each underwriting option is different and determines what staff can claim for. It also affects the cost of a policy.

Full Medical Underwriting (FMU)

This requires all staff to disclose their medical history on application. In most cases, the insurer will then exclude any pre-existing health issues.

It’s possible for exclusions to be reconsidered at renewal. Although this would require medical evidence from a relevant health professional.

Full Medical Underwriting is the most affordable option. But it’s time consuming to apply for, which is something to consider when setting up a policy.

Moratorium

Moratorium requires less paperwork than FMU, as there’s no need for health disclosure. It’s the most common type of underwriting.

Generally, insurers exclude any condition an employee has had in the past 5 years before the start of the policy. If they’ve had medical advice or treatment for the condition, an exclusion will apply.

Medical History Disregarded (MHD)

This is the best underwriting available on the UK market as it ignores any pre-existing conditions. It doesn’t matter when your employees suffered from a condition, the insurer ‘disregards’ it. Staff can then claim for any eligible condition listed under the policy terms.

Medical History Disregarded is only available for Corporate Health policies with 20-25 employees and it’s the most expensive type of underwriting. That said, employers choose MHD to ensure all staff are covered, regardless of health.

Continued Personal Medical Exclusions (CPME)

Continued Personal Medical Exclusions is used for switching existing policies. It ensures that the new insurer continues to cover the same pre-existing conditions as the old plan.

This underwriting is important for those who have had a condition treated under their old policy. The new insurer will not add any exclusions based on these.

How Much Is Corporate Health Insurance Per Employee?

The cost of Corporate Health Insurance varies from business to business. There isn’t a set figure, as policies are dependent on both business specific factors and employee demographics.

There are several things that influence the cost of a policy, including:

• Your employees’ ages
• Postcode(s) staff are normally based in for work
• How the policy is underwritten
• Policy options you want to add.

Example Corporate Health Insurance Cost

Here are some examples of the costs per employee for different sized businesses. To provide these, we’ve had to make a few assumptions about the level of cover. We’ve assumed:

• There is a £1,000 outpatient cap
• There’s a £100 excess on the policy
• There is a mid-tier hospital list.

These premiums are for illustrative purposes only. For quotes tailored to your business, don’t hesitate to get in touch on 02074425880 or email help@drewberry.co.uk.

Drewberry™ is a regulated independent insurance broker. We have a team of expert advisers on hand to help you compare Corporate Health Insurance quotes. With whole-of-market access, we can help you find the best policy at the most competitive price.

How Does HMRC Tax Corporate Health Insurance?

Offering Corporate Medical Insurance to employees is an allowable business expense. The cost of premiums can be offset against your corporation tax, so your business pays less.

Corporate Health Insurance is a P11D / Benefit in Kind. HMRC reduces your employees’ annual Income Tax allowance by the same amount of premiums paid for them. Although staff pay tax on this premium amount, they can earn less before they become liable for tax.

As the employer, you will have to fill out a P11D form which declares you’ve provided your staff with a Benefit in Kind. You’ll also have to pay employer’s National Insurance on the premiums.

How To Reduce The Cost Of Company Medical Insurance

As seen above, there are many factors at play when pricing Corporate Health Insurance. Some can’t be changed, such as your employees’ ages, but others can be adjusted to reduce the cost, including:

The Level Of Outpatient Cover

Having no outpatient cover reduces costs the most. But staff will have to use the NHS for all diagnostic testing and consultations. This can slow down their access to private inpatient care. We recommend at least some level of outpatient as it helps to speed up diagnosis and treatment.

If full cover is too expensive for your business, it can be capped to a monetary limit. This tends to be £1,000 per employee, per policy year. Capped outpatient cover is typically referred to as Mid-Range Corporate Health Insurance. It offers a perfect middle ground between no cover and full cover.

Your Excess

An excess is the amount willing to be paid upfront for healthcare services before the policy kicks in. The higher the excess, the lower the cost of premiums.

However, we don’t advise the highest excess, which can be up to £5,000, as it increases the upfront payment. While it does make premiums more affordable, it may not be an affordable option for all your staff.

Excesses start at £100. You can set this to zero if you want to, but this makes premiums the most expensive. By adding an excess, you can reduce the cost of the policy without affecting coverage.

Joseph Toft
Senior Consultant, Employee Benefits

Policy Hospital List

Even though you have health cover, it doesn’t offer treatment in every private facility. When setting up the policy, you’ll choose a hospital network. This determines where staff receive private healthcare.

Policies tend to have ‘tiers’ of private facilities. The best private hospitals, such as those in Central London, are the most expensive. The more comprehensive your network and the pricier the facilities, the more you’ll pay. You can limit your network and reduce the cost. These are often limited to local facilities and private wings of NHS hospitals.

Dental & Optical Cover

As standard, most policies cover dental procedures like cataract and wisdom tooth removal. However, routine dental and optical care are usually not covered. This includes routine checkups, eye tests, and prescription glasses / contact lenses.

By adding Dental & Optical Cover to your Corporate Health Insurance, staff can claim back part of the costs of these services. While it doesn’t cover dental and optical in full, it does help to reduce costs for employees.

Each insurer is different. UK insurer Aviva, for example, offers up to £450 for routine dental treatment. There is an additional £50 excess, though. Meanwhile, Vitality covers up to 80% of the costs (up to £400) for fillings, crowns, and root treatment.

6 Week NHS Wait Option

The 6 week wait option means staff can only make a claim if the NHS waiting list for treatment is longer than 6 weeks. If it’s less than this, they will use the NHS for healthcare.

This applies to inpatient treatment only and allows you to cut the cost of premiums. Employees will be seen privately for outpatient treatment if included on the policy. Waiting times aren’t taken into account here.

Due to the current length of NHS waiting times, some insurers such as AXA aren’t offering this option. The market changes regularly, so if you’re unsure, give us a call on 02074425880 or email help@drewberry.co.uk to find out your options.

Corporate Health Cash Plan: A Cheaper Alternative

Corporate Medical Insurance is a highly valuable benefit to provide to your employees. However, it’s not always an affordable option for all types and sizes of business.

For companies with a tighter budget, a Corporate Health Cash Plan is a great alternative. It costs less than a comprehensive Corporate Health Insurance policy, so it won’t go over budget.

Corporate Health Cash Plans pay part of the costs for healthcare, like dental checkups and eye tests. How much your staff can claim back depends on the insurer.

Additional Support & Services Included With Corporate Medical Insurance

Most health insurers offer a range of free extra benefits that both employees and employers can enjoy. These are designed with workplace wellbeing in mind, including:

Virtual GP Services

On most Corporate Health Insurance plans, you’ll find Virtual GP services available. Provided via a smartphone app, staff can often get medical advice 24/7.

This enables them to book appointments outside of regular working hours. A virtual setup also means they can speak to a healthcare professional from their own home.

We know from talking to our clients that many wait weeks for a GP appointment. And it’s not always easy to take time off to visit a doctor during working hours. Virtual GP services cater to everyone.

Before remote GPs, employees would need a NHS GP referral for private treatment. Now, it’s possible for doctors to make referrals through this service.

Other Support Services

Alongside remote GPs, insurers may offer:

• Access to stress helplines
• Mental health support
• Prescription services
• Nutrition and fitness programmes
• Gym membership discounts
• Retail discount platforms
• Rehabilitation, such as physiotherapy.

These tend to be free with your policy. You and your staff can reap the benefits without incurring extra fees. The policy can then go the extra mile and be utilised on a regular basis beyond the standard claims procedure.

Who Are the Best UK Corporate Health Insurance Providers in 2024?

As independent insurance experts, we work with all the top UK providers. When it comes to Corporate Health Insurance, there are 4 main providers:

• Aviva
• AXA
• Bupa
• Vitality.

Each insurer is different, and which one is right for your staff depends on your business. Our job is to make sure you get the most appropriate cover for your workforce at the most competitive price.

We are often able to negotiate better terms for you, as opposed to you buying insurance directly from an insurer. Our qualified experts will carry out a full market review each year to make sure you always have the best terms.

Compare Corporate Medical Insurance Quotes & Get Expert Advice

It takes time and expertise to set up the most suitable corporate scheme for a large group of staff. Many firms simply don’t have the resources in-house to manage this and choose to work with third-party experts.

Our team of financial advisers works with all the UK leading insurers and compare quotes from them. We also understand all the terms and conditions, and have processes in place to make reviewing the market as hassle-free as possible.

If you need help setting up Corporate Health Insurance, please don’t hesitate to call us on 02074425880 or email help@drewberry.co.uk.

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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.

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