Corporate Health Insurance

Corporate Health Insurance

Corporate health insurance is a valuable employee benefit that businesses can offer to their employees. Employees who feel valued are more loyal. A healthy staff can also contribute to the productivity of a business. 

With corporate health insurance plans, a premium is paid by the company and the employees get access to benefits like: 

• Private specialists and hospitals. 
• Faster diagnosis and treatment. 
• Coverage for a wide range of conditions. 
• Treatment options beyond what is provided by the NHS. 
   

The benefits of corporate health insurance to the company include: 

• Being more attractive when hiring new employees. 
• Happier employees with increased productivity and reduced absenteeism. 
• A more positive company image. 

Does my company have to offer health insurance for employees? 

Legally, no. Besides the mandatory benefits like a pension plan, sick pay and paid holiday time your company is not required to offer health insurance for employees in the UK. 

However, companies can choose to offer health insurance for employees as a way of: 

• Attracting and retaining talent. 
• Improving employee well-being. 
• Improve company productivity. 
• Creating a positive company image. 

How much does this employee health insurance cost, on average? 

Due to the several factors that affect the cost of employee health insurance, it is difficult to quote an average cost. Factors like: 

• The size of the company – Bigger companies pay lower premiums per employee for higher numbers of employees. 
• The age and health of employees – Older employees or those with pre-existing conditions may drive up costs. 
• Level of cover included in the policy – Basic plans with minimal cover cost less than comprehensive plans. 

To get an accurate quote for your company our online comparison platform Quotezone.co.uk can help companies assess coverage types and levels. With a wide range of insurers to compare companies can shop around for the best and cheapest deal, all in one place. 

Does the premium for corporate employee health insurance depend on the number of employees? 

Likely, yes. A key factor in the premium calculation for company medical insurance is the number of employees. But it is not the only factor that is considered. 

Here are some other factors: 

• Employee demographics – The age and general health of employees. 
• Older employees and pre-existing conditions – The number of older employees or those with pre-existing conditions. 
• Levels of cover – Basic plans with minimal cover cost less than comprehensive plans. 
• The industry worked in – Certain industries like construction have higher risks when compared to office-based industries. 

What other risk factors will influence the cost of employee health insurance? 

Several risk factors influence the cost of business health insurance. Factors like: 

• Employee age – Younger employees are generally healthier but with older employees the risk of chronic and other conditions is increased. 
• Health status – A high ratio of employees with pre-existing conditions will raise the risk levels. 
• Claims history – A company with a history of claims will be classed as a higher risk. 
• Industry your business operates in – Forestry for example is a higher-risk sector than teaching. 
• Location of business – The cost of medical care in the area where the business is based will also influence the cost of your premiums. 

What types of things will company medical insurance cover? 

The specific things covered by company private medical insurance will vary depending on the insurer and the plan that you choose. Coverage options can include: 

Hospital care: 

• As an inpatient – Hospital stays, surgery costs and associated charges. 
• As an outpatient – Consultations, tests, scans and certain treatments not requiring an overnight stay. 

Some plans can include added cover for: 

• Mental health therapy sessions and consultations. 
• Physiotherapy and chiropractic care. 
• Scans, X-rays, and other diagnostic tests. 
• Dental insurance and optician coverage. 

Each level of coverage can come with its own limits and terms that will be clearly outlined in your policy details.

Are there some conditions that will be excluded from coverage? 

Yes. Employee health insurance policies will exclude some conditions from coverage. Here are some of the more common exclusions: 

• Pre-existing conditions, depending on the specific condition and the insurer. 
• Chronic conditions, depending on the condition and the insurer’s policies. 
• Cosmetic surgery. 
• Accident and emergency treatment. usually covered by the NHS. 
• Certain treatments like fertility treatment, sexual dysfunction, or gender reassignment surgery. 
• Routine health checks and vaccinations. 

Will my employees have access to better doctors and consultants with company health insurance? 

With employer health insurance your employees will have access to a wider range of doctors and consultants. This can offer second opinions and potentially better care overall. Here is how this is possible: 

• Business health insurance usually gives employees access to a much wider network of doctors and specialists. 
• This could mean less time waiting to get an appointment to see a specialist when they need to.  
• With quicker access to specialists, your employees could be diagnosed and receive treatment sooner than using the NHS alone. 

If one of my employees has a pre-existing condition, will that be covered? 

It depends. Pre-existing conditions are typically not covered by most of the standard corporate health insurance plans. Some larger plans will absorb the risks associated with pre-existing conditions. An exclusion could also be applied if necessary. Always check the details of a policy concerning preexisting conditions before you invest if this is a concern.  

Note, that some insurers offer separate plans specifically designed to cover pre-existing conditions. It must be noted that these policies can be more expensive.

Will my employees need medical checkups before I can add them to my business health insurance? 

Typically, no. Employees don’t usually require medical checkups before being added to your business health insurance plan. But know that the process can vary depending on the insurer and the size of the business. 

Commonly, smaller businesses with standard plans don’t have a checkup requirement. But larger businesses (over 100 employees) or plans with extensive coverage might require checkups before adding employees. 

Can I include non-employees on a corporate health insurance policy too? 

Generally, no. Non-employees cannot be included in your company’s private medical insurance. Here is why: 

• Policy design – This insurance plan is designed to provide cover for employees and their eligible dependants as part of the employee benefits package. 
• Income tax implications – For non-employees this would typically be regarded as a taxable benefit. This could cause tax complications for the company and the non-employee. 

Does this type of policy cover private dental treatment? 

This will depend on the policy. Company medical insurance might not automatically cover private dental treatment, however, it could be added or selected as an extra level of coverage. So, if you do require dental cover for your employees there are policies that can provide this. 

Does this type of insurance usually cover alternative therapies? 

Standard corporate health insurance plans don’t historically cover alternative therapies. But again, this can often be selected as an extra level of cover. However, alternate therapy add-on covers will typically come at an additional cost. Given the popular demand for such treatments, providers may increasingly offer cover for alternative therapies and treatments within their plans. It really comes down to the specific provider.  

Note that this add-on cover would usually have a set coverage limit to restrict the number of sessions in a period and will only cover certain types of therapy. 

Is this type of insurance policy tax deductible? 

Generally, yes. Payments made for employee health insurance by businesses are considered a business expense and as such are tax deductible. 

Employees whose company pays the premium are fortunate in that their health insurance premium is not considered taxable income. 

How to get corporate health insurance

Quotezone.co.uk can help you compare corporate health insurance options so you can cover your employees at a great price. Our partners will provide you with a quote to match your needs and take the stress out of finding the right corporate health insurance policy.