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How private medical insurance can help your business

If you really want to add value to your employee benefits package, private medical insurance should be at the top of your list. According to Ellipse, 48% of employees put private health care as one of their most valued benefits as well as life insurance and critical illness. Despite this, only 20% of employers actually provide these for their staff.

Typically, employees value benefits that protect their health and provide them with financial security. There are plenty of benefits that can come from providing private medical insurance. Both for the business and for the employee itself.  It can aid in creating a happy and productive workforce and helps the business become profitable.

We look at the benefits of private medical insurance and how it can help your business.

Benefits for the business

Loyal, high-calibre staff 

Providing benefits that employees really value can help you to recruit and retain quality staff. When you have good members of staff that really bring value to your team, your business can flourish. Employees are more likely to stay in a job that provides additional perks. High staff retention prevents you paying out for replacement recruitment and training and can save you money.

Give productivity a boost

A healthier team is generally happier, which can actually boost productivity rates. When employees are in a better mood they tend to be more productive. Demonstrating that you care for their wellbeing can also make an employee feel appreciated. Health and happiness can influence your employees’ ability and motivation to perform well, which in turn can benefit your bottom line. 

Cost-effective methods

Private Medical Insurance can be put through as a business expense for limited companies. It can benefit the business if private healthcare for employees is paid for by the business as the premiums are eligible for tax relief. Therefore, private medical insurance is a cost-effective way of providing a benefit. It also means that you’re treating you are investing in your employees’ wellbeing. This can lower the cost of staff turnover including replacements, training, temporary cover, which makes private medical insurance a commercially viable option for the business.

Reduced absenteeism

With access to quality medical facilities, your employees can get quicker treatment and care when they are unwell. This means they can get the help and treatment they need and get back to work quicker. With private medical insurance, employees can avoid the high volume waiting lists from the NHS and get treated quicker. This can prevent extra days off taken due to illness as they have faster access to care. Furthermore, through the NHS you often need a few appointments before you get the treatment you need. Care can be provided closer to home if specialists are required for treatment.  This can help to minimise absence and maximize productivity, with fewer days lost to sick leave.

Improved job satisfaction

When an employer provides a decent benefits package, the employee generally feels like they are valuable. In addition to this, employees’ well-being and mental health are directly correlated with job satisfaction. When an employee feels like they aren’t supported and there are lower levels of job satisfaction, then it can influence their health. Therefore, by avoiding this with private medical insurance, employees can be happier, healthier and stay longer in their role.

Benefits for the individual

Increased access to healthcare

Employees can benefit from better access to healthcare. Through private medical insurance, individuals can get quicker diagnosis and treatment as well as help with recovery. This includes scans, tests, consultations, surgical procedures, medication, hospital stays and therapy. If a specialist consultant is required, often with private medical insurance they can get treatment closer to home. They also are able to get private rooms with extended family visiting hours. Private healthcare isn’t always affordable, so individuals, as well as their family, can benefit from a private medical insurance policy.

Reduced waiting times

With private medical insurance, customers can get faster access to care. The NHS often has long waiting lists for treatment and care, which can mean employees take more time off ill whilst waiting to get their appointment. Around 1 in 10 people are waiting for hospital treatment and often can wait up to 18 weeks at a time. With private healthcare, employees can have access to care sooner, avoiding long waits and a possible deterioration of the condition.

Specialist care

If an employee suffers from a serious illness such as a heart attack or cancer, they may need a specialist consultation and treatment. With private medical insurance, they can get access to this much closer to home. Higher quality of care and treatment programs help employees to not just get better physically but mentally too. Ongoing treatment can help to minimise the impact and after effects of having a serious illness and help the individual to get back to normal life. Specialist care can also be flexible, and patients can book appointments that suit them, working around their schedule.

The cost of employee absenteeism

Health insurance can really benefit the business, especially when they can’t afford to have employees off ill. Small businesses, in particular, can suffer from having staff off sick and the costs can be high. In addition to the costs of replacement, recruitment and training, it can cause overloads to other members of staff creating a ripple effect.

What’s more, employees tend to look for other roles due to the lack of benefits they are offered. Job roles look more attractive when the employee gets additional services such as life insurance or private health care.

What to do before you get private medical insurance

Before you look at getting private health in you’ll need to consider

  • The number of employees you would like to cover
  • A budget that you set for each employee
  • Which options you would like to add as part of the core policy
  • Additional cover that you would like to add to the policy such as extended cancer care, therapies and dental care.
  • Whether you would like to have different levels of cover for staff at different levels.

Applying for private healthcare

When you apply for private health care, you’ll need to give the advisor certain information about your employees in order for them to give you an accurate quote. Details such as age, gender, address and occupation need to be provided to obtain a private medical insurance quote.

No need for medical checks

One of the great things about private medical care is that there is no need for health checks. This makes the process a lot quicker to set up. Any illnesses, usually in the last 2-5 years are excluded from the policy and the insurance provider won’t pay out for them. You can decide to get full underwriting options so that medical checks are conducted before the policy is taken out. However, this normally involves a longer process with a lot more paperwork. Private medical care can be set up without the need for a medical check, meaning you and your staff can get access to healthcare quicker.

Additional care 

Often, most businesses opt for the standard policies which come with the core services such as hospital stays, medical treatment, surgeries and consultations. However, companies will have the option to add extra services such as psychiatric care and dental. The mental health of your employees can be just as important as the physical health when it comes to keeping them happy and productive. So, it might be a viable option you will want to consider.

Businesses will have the option to let employees include their family in their policy too. Employees can get extra cover for their partner and children for added peace of mind.

Private healthcare when you are self-employed

When you are self-employed, your health can directly impact your business. If you were to be involved in an accident or become seriously unwell requiring hospital treatment, then the time taken off can make a huge difference to your earnings. With private healthcare, you can get quicker access to treatment and get back to work sooner.

Private medical insurance for small to medium businesses

When staff members are off sick it can also make a huge impact on a small or medium business. Sick leave and illness can disrupt the workforce, cause workloads to shift and overwork staff. It can also cost the business money when they have to get temporary cover, replacement staff and training. Furthermore, the morale of the company can lower, which can cause other members of staff to consider moving. With private medical insurance, you can reduce the cost of absence and keep a productive and healthy team.

What options are available?

At Business Cover Expert, we compare top UK providers to find the best type of healthcare for you. We work with companies such as Aviva and Vitality, which includes additional benefits such as gym discounts, free Starbucks and spa treatments when you stay fit and healthy. We also can help you find cover if you’ve already suffered from an illness, by working with companies such as The Exeter, who specialise in finding cover if you’ve got a medical condition.

For more information about your private medical insurance, life insurance or critical illness cover, contact us for a free, no-obligation quote. Once you’ve filled out a quote form, a partnered advisor can give you a call to discuss your private medical insurance options.

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