The benefits of Group Private Medical Insurance for your business and its employees
Group Private Medical Insurance can be a fantastic option for many businesses, and it is one of the most popular and attractive benefits for employees.
Here, we explain what Group Private Medical Insurance is and highlight its implications and benefits for both your business and your employees.
What Is Group Private Medical Insurance?
Group Private Medical Insurance is just one type of employee benefit. An employee benefit is a product or service which an employer pays for on behalf of their staff.
Employees enrolled in a Group Private Medical Insurance plan gain access to the extensive benefits of private healthcare services, facilities and professionals.
Why is Group Private Medical Insurance attractive to your employees?
It has a range of benefits which can greatly reduce stress for employees who fall sick. These include access to the latest procedures and medications, some of which the NHS may not yet fund due to cost.
Waiting times can be shorter and appointment times more accessible compared to the NHS, which in turn reduces the amount of time employees spend off work with health conditions, potentially on minimal sick pay.
There could also be the freedom to choose the hospital and professionals which provide the treatment and those covered can potentially use their cover to have extra diagnostic tests such as scans and often have better access to post-treatment support, for example physiotherapy.
Cover can also be extended to employees’ family members.
Employees often have the perception that will receive a higher standard of healthcare compared with the NHS which gives peace of mind and the sense that they are being looked both holistically and financially by their employer.
How can Group Private Medical Insurance benefit your business?
The service the NHS provides revolves around the healthcare needs of the general public. Group Private Medical Insurance suits the needs of your business and your workforce.
More flexibility and faster appointment times allows employees to see healthcare professionals outside working hours so they can often be diagnosed without taking time off work. Private schemes also bypass lengthy waiting lists for treatment so your employees can receive treatment faster and be able to return to work quicker, meaning less disruption to your business.
Having one healthcare provider work with your business allows a long-term relationship to develop between the provider and your employees and also allows your healthcare provider to get to know the particular issues which might affect your industry sector, and gain experience in identifying, treating and preventing recurring problems. All of this can benefit business productivity.
What are the tax implications?
Where an employee is included in a Group Private Medical Insurance scheme, this is treated as benefit in kind by HMRC, so employees pay income tax on the premiums.
The cost of the premiums to the business is an allowable business expense, so your company will receive tax relief on premiums.
Get in touch
We can help you structure a Group Private Medical Insurance plan so that you get the best cover for your business and employee needs. Get in touch
The information was correct at time of publishing but may now be out of date.