Health Cash Plans are experiencing explosive growth as forward-thinking businesses discover affordable solutions to enhance staff wellness during a period of soaring medical costs. Smart HR leaders are recognising that these plans offer exceptional value for both employers and employees.
The UK saw Health Cash Plans membership expand by 14.8% in the previous year, with an additional 200,000+ employees joining these schemes. This brought the nationwide total to more than 1.6 million workers with coverage: clear evidence that Health Cash Plans are becoming an essential component of competitive benefits packages.
The COVID-19 pandemic highlighted the critical importance of accessible health benefits, fuelling unprecedented interest in corporate Health Cash Plans which deliver both affordability for employers and tangible, immediate benefits for employees.
But are corporate health cash plans suitable for your business? Below, we examine the key questions and considerations of incorporating Health Cash Plans into your company's benefits offering to help you make an informed decision.
Health Cash Plans deliver measurable business value by:
- Demonstrating employee health as a business priority by showing genuine commitment to workforce wellbeing
- Supporting employee retention and satisfaction by reducing turnover costs and improving engagement
- Enhancing your financial wellbeing offering by creating a more attractive benefits package
- Reducing absenteeism through preventative care and faster access to treatment
- Making vital healthcare more manageable by supporting working families and diverse employee needs
Key questions about the benefits of Health Cash Plans
- How do Health Cash Plans promote preventative healthcare?
By covering routine health expenses like dental check-ups, eye tests, and health screenings, employees are more likely to maintain regular health appointments, reducing long-term absences and promoting overall wellbeing. This preventative approach helps identify health issues early, reducing the need for more expensive treatments later. - Can employees start using these plans immediately?
Unlike private medical insurance, Health Cash Plans typically offer immediate coverage without requiring medical examinations, so employees can start claiming straightaway and they tend to cover pre-existing conditions. However, do check the details before buying the policy in case there are exclusions. - What mental health support do these plans provide?
Modern health cash plans often include mental health provisions, such as 24/7 counselling helplines, face-to-face therapy sessions, and stress management support, crucial in supporting employee mental wellbeing in today's challenging work environment. - How cost-effective are Health Cash Plans compared to private medical insurance?
Corporate health cash plans are significantly more affordable than private medical insurance and can be structured in various ways:- Fully company-paid for maximum employee appreciation
- Employee-paid through salary sacrifice for tax efficiency
- Hybrid funding models showing mutual commitment
- What additional lifestyle benefits do these plans include?
Many health cash plans include supplementary benefits beyond traditional healthcare, such as online GP services, employee discount schemes, and lifestyle assessments. These extras help create a comprehensive employee benefits package.
Considerations When Implementing Health Cash Plans
- Annual Benefit Limits
While these plans offer excellent value, they typically have annual limits (e.g., £300-£600 for specialist consultations). These limits cover most employees' routine healthcare needs, making them ideal for preventative care strategies. - Maximising Utilisation
Some employees may initially underutilise these plans due to lack of awareness. Proactive communication and education about available benefits typically result in high engagement rates and employee satisfaction. - Streamlined Administration
With the right provider like FlexGenius, there is minimal administrative burden as everything is managed for you: from enrolment to claims processing to ongoing support. - Designed for Routine Healthcare
These plans excel at supporting day-to-day healthcare costs and complement other benefits to create a comprehensive healthcare strategy addressing both wellness and emergency needs. - Making the Strategic Decision
When evaluating whether to implement health cash plans, successful HR leaders consider:- Workforce demographics Ensure the benefit aligns with your employee population's needs and preferences
- Current benefits integration Assess how the plans enhance rather than duplicate existing offerings
- Total investment analysis Consider not just premium costs but the positive impact on retention, engagement, and absenteeism
- Implementation approach Decide on core versus voluntary benefit status and optimal funding model
Frequently Asked Questions About Health Cash Plans
- What's the difference between these plans and private health insurance?
Health cash plans focus on routine healthcare costs rather than major medical expenses, making them more affordable alternatives to private medical insurance. They offer immediate coverage without medical examinations and typically include pre-existing conditions. - Who can be covered under corporate health cash plans?
Corporate health cash plans typically offer flexible coverage options for employees and their families, with various plan structures available depending on your organisation's needs and budget. - How do pre-existing medical conditions affect eligibility?
Corporate health cash plans offer inclusive coverage for pre-existing conditions without requiring extensive medical examinations or lengthy waiting periods. - What treatments and services do these plans cover?
Corporate health cash plans provide coverage including dental care, optical services, physiotherapy, and wellness services, plus additional lifestyle benefits like employee discounts and digital health tools. - How does the claims process work?
Modern health cash plans feature user-friendly online claims portals for efficient submissions and reimbursements.
The Bottom Line: Health Cash Plans Deliver Results
Including Health Cash Plans in your employee benefits offering provides meaningful day-to-day healthcare support that employees genuinely value and use frequently. The emphasis on prevention, immediate access, and comprehensive support makes them compelling for businesses serious about employee wellbeing and retention.
Success lies in partnering with the right provider who can integrate these plans seamlessly into your broader benefits strategy while ensuring clear communication maximises their impact for both your company and your workforce.
Ready to Transform Your Employee Benefits?
Powered by Avantus, our FlexGenius portal offers both company-paid and employee-paid Health Cash Plans with minimal administrative burden as everything is managed for you.
Book a free demo today to discover how our wide range of Employee Wellness Benefits can strengthen your benefits package and boost employee satisfaction, or contact us at enquiries@avantus.co.uk to discuss your specific requirements.
