Health cash plans are the most popular health related employee benefit ranked only behind pensions according to the 2017 Willis Towers Watson Employee Benefits and Wellbeing Index.
So why are cash plans ranked so highly even above full blown medical insurance?
“The great value of cash plans is that they are designed to be claimed against. I know that may sound like a daft statement but some Private Medical policies can really sting the claimant at renewal which puts people off claiming for anything other than a major issue. Cash plan providers expect loss ratios of 70-80% and policy-holders can claim back everyday health expenses like dental, optical and therapy benefits”
Simon Milner, director of Lesson Moore.
Historically many cash plan providers can trace their history back to the 1870s long before the NHS when employees were encouraged to make payroll contributions to support local hospitals. Today many of the providers are non-profit making mutual organisations..
Full blown private medical insurance is extremely highly valued by somebody in the unfortunate situation of having to claim for a serious medical condition but for the “lucky” policy holder who remains in good health they can start to question the P11D tax cost and wonder what they are getting for their money. Cash plan holders on the other hand get highly tangible benefits making 2-3 claims per policy year.
From an employer’s point of view cash plans are relatively inexpensive and should contribute towards lower absence rates and be a contributor toward higher levels of staff retention.
To find out how a cash plan for your staff would work why not contact us on 033 33 55 64 05.
