When it comes to managing employee health costs, there are two popular options – health care cash plans and private medical insurance (PMI). Both support the costs of health care treatments but in different ways and with different benefits. Here’s a handy guide to help you choose what’s right for your business and your employees.
What is a health care cash plan?
A health care cash plan refunds employees on the cost of everyday health treatments such as dental check‑ups, glasses, eye tests and physiotherapy. Many also include 24/7 access to a GP service.
Unlike traditional insurance, cash plans are designed to be used regularly, helping employees to access routine treatment early and reduce the risk of more serious issues and absence. No medical is needed before you take out a policy, and everyone pays the same at each level of cover regardless of age or medical history. They’re also a low‑cost option – typically much cheaper than PMI.
What is Private Medical Insurance (PMI)?
PMI covers the cost of private medical treatment, helping employees to access diagnosis and treatment quickly, if they were to become unwell. According to private health care analysts LaingBuisson. the number of people in the UK covered by a PMI policy, hit a record high of 8.43 million last year.
What’s included varies by policy, and costs depend on factors such as age, medical history, lifestyle and even location. PMI is generally more expensive because it covers unpredictable and often complex medical needs.
Which option is right for your business?
This depends on your budget, your employee needs and the type of support you want to offer. Both products deliver different but valuable benefits, and some organisations even choose to offer both options.
If you’d like to explore Handy Health Cover as a cash plan for your business, our team is here to help. Get in touch today!
