Company health insurance

Company health insurance offers employees access to private medical insurance. It can ensure your workforce remains healthy and happy but also that your business doesn’t suffer any unnecessary loss due to prolonged staff sickness. We’ve looked into how company health insurance works to help you decide whether your business needs it.

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• What's in this guide?

  What's in this guide?

  1. What is company health insurance?
  2. What is included in company health insurance?
  3. What is not included in company health insurance?
  4. How does company health insurance work?
  5. Does my business need company health insurance?
  6. Benefits of private healthcare cover for businesses
  7. How to find the best company health insurance
  8. Frequently asked questions

What is company health insurance?

Company health insurance, which is also referred to as corporate or business health insurance, ensures that the employees of a business can gain access to private medical insurance after an injury or an illness.

Company health insurance is designed to work in conjunction with the NHS. If an employee from your business requires medical assistance, they would visit their GP or an NHS Accident and Emergency department in the first instance but tell the medical practitioner that they have company health insurance.

With your employee letting the medical professionals know that they have a company health insurance policy, and informing their insurer that they intend to make a claim, they will be able to access tests or specialists referrals quickly, rather than having to wait in long queues that are common within the National Health Service (NHS). And because there’s no delay in the diagnosis, your employee could also be treated much faster and in a place of their choosing.

By paying a company health insurance premium, your employees can, in some cases, select their own private hospital, their own doctor and be treated in their own private room.

What is included in company health insurance?

A company health insurance policy will vary depending on the insurer, the size of the company and the nature of its business and work. You can expect a company health insurance policy to include some of the following:

• A range of approved private hospitals to choose from
• GP helpline available 24/7
• Counselling and stress helpline available 24/7
• Mental health cover for anxiety or depression
• Optional extra cover for pre-existing conditions
• Optional extra cover for cancer care

What is not included in company health insurance?

The exclusions to a company health insurance policy will depend on the level of cover taken out but it’s likely that most will exclude pre-existing medical conditions, cosmetic surgery (unless it’s deemed to be medically necessary), standard birth procedures or chronic conditions.

Be sure to shop around and compare policies in order to select the best cover for your needs.

How does company health insurance work?

There are several types of company health insurance on the market but essentially, they should all cover, to some degree, the cost of private healthcare for employees. Just as other insurance policies work, a company health insurance policy will see the employer pay premiums on a monthly or annual basis on behalf of its workforce. Then, when an employee requires medical assistance, they would receive a payout, up to a certain amount, for any treatment needed.

While some policies offer only limited medical care, other policies can be more comprehensive. Then there are flexible policies that can also be tailored with extra cover to suit employees as required.

Does my business need company health insurance?

You may think of company health insurance as just another expense that you can do without but think carefully. Prolonged employee sickness might slow your business productivity right down and cost you dearly. It might even cause the remaining employees that are working extra hard, to become demotivated and stressed, or worse, sick themselves.

Company health insurance could allow your employees to get the right help when they need it most. And if employees recover faster, they’re more likely to return to work quicker, allowing your business to maintain productivity and profits.

Always do your research into which policy might best suit your employees based on their needs.

Benefits of private healthcare cover for businesses

Company health insurance offers many benefits for a business and its employees. These can include:

• Peace of mind that employees will be taken care of when they need it and avoid long waiting times that are common with the National Health Service (NHS).
• Convenience for employees who can choose appointments and private hospitals close to home or work.
• Employees can gain access to faster diagnosis and treatment through private hospitals.
• Employees can have access to better facilities such as private hospitals and accommodation.
• Happy employees.
• Employees that are more likely to stay with the company.

How to find the best company health insurance

Finding the best company health insurance policy that suits your employees will very much depend on your own business. What might work for you and your employees might not work for another business and its employees.

Company health insurance will differ depending on the type of policy, the level of cover offered and the provider that is offering it.

It’s worth remembering to do some research to compare policies in order to find the cover that matches your requirements.

Frequently asked questions

• How much does health insurance cost a company per employee?

  The cost of a company health insurance policy will vary depending on a number of factors. These include:

  • The nature of your business. There are some businesses that will typically pose more risk to its employees than other businesses and insurance for the former will cost more as the risk is greater. However, if your employees work in an office, the risk to them injuring themselves is far less than those that might work on a construction site and your premiums would reflect this.
  • The level of cover you choose. Choosing a more comprehensive policy over basic or mid-range cover will mean your premiums are likely to increase.
  • Where your business is located. Unfortunately, company health insurance policies typically cost more in certain areas of the UK. Some of the priciest regions are London and the south-east. This could be due to private hospital fees costing more than in other parts of the UK.
  • How old your employees are. If your employees are relatively young, you can expect to pay much less than if your workforce is made up of much older individuals. Age is often coupled with greater medical risk. And with greater medical risk comes increased premiums from the insurer.
  • The number of employees. While every employee will be an additional cost to your insurance premium, larger employee numbers can sometimes warrant bigger discounts.

• Will my employees need to have a medical examination before taking out company health insurance?

  When taking out a company health insurance policy, your employees may be asked to answer several questions about their lifestyle and health. Based on the answers they provide, the insurer may not require any additional information. On the other hand, the insurer may decide that further information is required and then request that they complete a medical examination and provide the results before calculating the premium.

• Does health insurance cover me abroad?

  Your health insurance is unlikely to cover you while you’re abroad. If it does cover health overseas, it may only be for emergency treatment for a certain number of days. If you require comprehensive cover while abroad, you may need to research international health insurance policies.