With most insurers providing a nationwide hospital list with over 250 hospitals, should you or your employees require medical treatment you will be able to make an appointment at a facility close by at a convenient time, reducing the stress and disruption for both the individual and the business.

As employee benefits go, private health insurance is up there as one of the most valued, having a plan in place could help to attract and retain the best staff whilst demonstrating you care about the health and wellbeing of your employees.

Andrew Jenkinson, consultant at Drewberry Insurance explains: “The health insurance market is changing with much greater emphasis being placed on healthy living and a proactive approach to healthcare. Over and above the health insurer simply covering the cost for medical treatment, many have additional health and wellbeing benefits designed to encourage your employees to live a healthier lifestyle, thus helping reduce absenteeism and increase productivity.”

What can you expect from the insurer?

Health insurance has been around for many years now and the insurers are becoming more and more innovative with their products. When considering a health insurer, the core of a great product is the customer service and the insurer’s delivery when claims arise. However, health insurance has become so much more than the reactive product it once was.

With many of the UK’s leading insurers additional services are often provided, that can include a 24/7 GP or health information telephone service, a dedicated support team for cancer claims, an employee assistance programme and wellbeing benefits (such as discounted gym membership).

For further information about business health cover and the process for setting up a scheme the Drewberry Insurance guide to Business Health Insurance is a useful resource.

What will health insurance cover?

The level of cover provided can vary wildly from insurer to insurer and it is important when comparing options from different providers that the cover provided is of a similar level. Most health insurance products can be categorised as basic, mid-range or comprehensive.

What defines a plan as either basic, mid-range or comprehensive is the level of out-patient treatment and additional benefits provided as most insurers will cover in-patient and day-patient treatment in full.

  • In-patient Treatment is treatment where the patient is required to stay in hospital overnight. With most company health insurance schemes in-patient and day-patient treatment will be covered in full and includes the cost of accommodation, treatment and consultants’ fees. 
  • Out-patient Treatment includes consultations, x-rays and diagnostic tests where the patient does not require a stay in hospital. Where a basic plan may provide no out-patient cover, a mid-range option may provide cover up to a monetary limit (such as £1,000 per policy year) and a comprehensive plan is likely to cover out-patient treatment in full. 
  • Cancer Care , one of the key concerns for many businesses when taking out private medical insurance is making sure employees are looked after should they be diagnosed with cancer. Many insurers now have a specialist team for cancer claims with dedicated nurses to support the individual through the process to ensure it is as smooth as possible and the individual has all the support they require. 
  • Other Benefits many insurers add to the core in-patient and out-patient cover include physiotherapy, psychiatric treatment, home nursing and emergency overseas cover. Some of the more comprehensive products have such benefits included as standard whereas others allow you to select these benefits should you wish to include them within your scheme.
Ways to contain the medical insurance premiums

Similar to an individual health insurance plan, the company can opt to include an excess. With an excess, should a claim arise the individual would need to pay the excess amount towards the treatment they require. Including an excess can help to reduce the premiums and excesses can range from as little as £100 up to £500 per employee per policy year.

Most businesses turn to private health insurance to ensure their employees receive medical treatment as quickly as possible. Opting for a six week wait option can help to reduce the cost of group premiums by up to 30% while still ensuring that employees receive treatment fairly quickly. If the NHS waiting list for the required treatment is less than six weeks then the individual will be required to use the NHS. If the waiting list is more than six weeks they would be eligible to receive the treatment privately straight away.

What is not covered by private health insurance?

The UK health insurance market is designed to work alongside the NHS, as such GP services and accident and emergency do not tend to be covered.

In addition, chronic conditions will not be covered and for smaller schemes where each employee is medically underwritten pre-existing medical conditions will also not be covered.