Introduction
In today's competitive job market, offering the right employee benefits can make all the difference when it comes to attracting and retaining talented staff. One benefit that's becoming increasingly popular among UK businesses is private medical insurance (PMI).
In this guide, we look at why more businesses are choosing to offer health insurance to their teams, how it works, and what the potential benefits are for both employers and employees.
Why Are More Businesses Offering Health Insurance?
With NHS waiting times continuing to grow, many employees are finding it harder to access timely treatment through the public healthcare system. This can lead to extended time away from work, reduced productivity, and increased pressure on colleagues who have to pick up the slack.
By offering private health insurance, businesses can help their employees access faster treatment — which benefits everyone:
- Employees get quicker access to diagnosis, consultations, and treatment
- Employers benefit from reduced absenteeism and a healthier, more productive workforce
- Teams experience less disruption when colleagues can return to work sooner
Key Benefits For Employers
1. Attract And Retain Talent
Health insurance is consistently ranked as one of the most valued employee benefits in the UK. Offering it can help your business stand out from competitors when recruiting, and can also help reduce staff turnover by giving existing employees another reason to stay.
2. Reduce Absenteeism
When employees can access treatment quickly rather than waiting months on the NHS, they're back at work sooner. For small and medium businesses, even a few days of reduced absence per employee per year can make a meaningful difference.
3. Demonstrate That You Value Your Team
Providing health insurance sends a clear message that you care about the wellbeing of your people. This can boost morale, loyalty, and overall job satisfaction.
4. Potential Tax Advantages
For limited companies, health insurance premiums paid for employees are typically treated as an allowable business expense, which can reduce your corporation tax bill. Your accountant can advise on the specifics for your business.
Key Benefits For Employees
- Faster treatment — skip long NHS queues and see specialists sooner
- Choice of hospital and consultant — pick where and who treats you
- Mental health support — many plans include therapy and counselling
- Flexible appointments — fit consultations around work commitments
- Family cover options — some schemes allow employees to add partners and children
How Does Business Health Insurance Work?
Setting up health insurance for your team is more straightforward than many business owners expect. Here's the typical process:
- Get quotes — compare options from leading insurers like Bupa, AXA Health, Vitality, and Aviva
- Choose the right level of cover — from basic inpatient-only plans to comprehensive cover including outpatient, dental, and optical
- Select the underwriting approach — options include moratorium or full medical underwriting
- Enrol your team — employees are added to the scheme and can start using their cover
Group schemes (for two or more employees) often work out cheaper per head than individual policies, making them a cost-effective option for businesses of all sizes.
What Size Business Can Offer PMI?
You don't need to be a large company to offer health insurance. Many of the clients we work with at Elev8 Health Solutions are:
- Small business owners with a handful of employees
- Company directors looking to cover themselves and key staff
- Growing businesses using PMI as a recruitment and retention tool
Whether you have 2 employees or 200, there are options available to suit your needs and budget.
How Elev8 Health Solutions Can Help
At Elev8 Health Solutions, we specialise in helping UK businesses explore and compare business health insurance options. We work with all the leading UK providers and can help you find the right scheme for your team — whether it's a small group plan or a larger corporate solution.
