If you are considering implementing a healthcare benefit in your organisation you may be unsure whether private medical insurance (PMI) or cash plans will fit your needs best. This list may help you decide.
1. Caters for the entire workforce
Unlike PMI, which is traditionally aimed at senior managers, the lower cost of cash plans means they work well for blue-collar workers too. Also, employees can generally join regardless of age, they won’t need a medical to join and subscriptions are unlikely to increase as a result of age or making a claim.
2. Can make you an employer of choice
Cash plans offer a valuable benefit for a low premium cost to employers. On the face of it, employees can claim more in benefit than the employer is paying in premium. Offering a cash plan conveys the message that the employer cares about its workers.
3. Helps with absence management
Cash plans can reduce absenteeism and related costs. For instance, there are now fewer dentists available who offer NHS examinations and treatment. A dental benefit encourages people to visit the dentist regularly, which reduces the risks of dental problems that could develop into absence issues.
4. Improves employee engagement
Offering such a perk can help staff feel valued and can boost staff morale and motivation.
5. Aids recruitment and retention
A good cash plan could make the difference when poaching staff from competitors who offer similar pay rates and career structures. Meanwhile, valued workers are more likely to stay with a firm than leave.
6. A flexible option
There is a choice of options on how to offer the scheme – company paid, part subsidised, or employee paid. They can be customised to meet business needs.
7. Cheaper than PMI
Cash plans are a more affordable option for businesses than PMI plans. Employees who are covered by cash plans can enjoy the benefits for their everyday healthcare needs. By contrast, a healthy employee can be a member of a PMI scheme for years and not benefit directly from it.