Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Private medical insurance

An introduction to private medical insurance

by Personnel Today 18 Nov 2010
by Personnel Today 18 Nov 2010

Private medical insurance: executive perk or absence management tool?

Sickness absence is a key issue for UK business. When employees fall ill, the imperative is to get them diagnosed correctly, treated effectively and back to work as quickly as possible. And that’s where private medical insurance (PMI) comes in. Once upon a time, PMI was considered an executive perk most commonly found at director and managerial level.

However, over the years, employers have realised the benefits of offering private medical schemes – which cover the costs of private medical treatment for curable short-term illness or injuries (often referred to as acute conditions) – for all levels of employees, viewing it as an essential absence management and staff retention tool.

Despite the recession, PMI has remained the most commonly available health benefit, provided by around two-thirds (66.4%) of employers. According to the 2010 XpertHR study of over 440 organisations, senior executives fared the best with 57.1% of firms offering PMI to directors, while over half (53%) provided this benefit to managers, and one-third (35.4%) to other staff.

According to Paul Ashcroft, principal and head of sales/health and benefits scheme at consultancy Mercer, the market has changed considerably in the last 25 years, since Bupa and PPP dominated the scene: “PMI schemes have evolved quite dramatically: the style of benefit; what you can and can’t include. Employers can put an excess on the scheme so employees have to pay part of their claims.”

Today, there is a large PMI market, ranging from Aviva and AXA PPP to smaller not-for-profit organisations such as Simplyhealth and WPA. Levels of cover can vary from basic – covering acute, curable short-term illnesses and injuries that are expected to respond quickly to treatment – to comprehensive/critical cover, and cancer cover, which may be required over a long term.

Tailored packages

Some employers may be deterred by the perceived expense of setting up PMI schemes but there are plenty of ways costs can be reduced. And plenty of organisations tailor packages to suit their needs. The XpertHR study found that airline meal supplier Alpha Airfayre provides family cover for directors, partner cover for managers and single cover for other employees. Elsewhere, software company IRIS offers family cover for managers and directors compared with single cover for the remainder of its workforce.

Using an intermediary

In addition, while some employers buy in PMI directly, many choose to use intermediaries/brokers with specialist knowledge, as they can often fish out the most cost-friendly deals, provide expertise and remove some of the administrative burden.

This guide is designed to help you answer any questions you may have. It will examine the benefits of PMI, cost implications, the types of providers and packages available, whether you should use a broker or buy directly, how easy it is to switch provider (and employee considerations if you change), and tax implications. It will also look at the option of corporate healthcare trusts (HCTs), which may be more cost-effective for larger employers.



Avatar
Personnel Today

previous post
NHS Employers launches guide to help cut agency staff costs
next post
Legal opinion: EU proposals to extend maternity pay

You may also like

How can HR help staff get through the...

4 Nov 2021

Coronavirus only proves that SMEs need employee benefits

24 Sep 2020

Employee benefits: Why data is king

12 Mar 2020

Aon buys Willis Towers Watson in £23bn deal

9 Mar 2020

Global mobility and HR summit comes to London

23 Oct 2019

How businesses can support the NHS and help...

24 Jun 2019

Uber to give drivers medical cover, sick pay...

24 May 2018

Wellbeing technology in the workplace: trending now and...

4 Jan 2018

10 benefits to include in a flexible benefits...

24 Aug 2017

Healthcare trusts: Watch out for tax rule changes

6 Jun 2017
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+