The UK saw health cash plan 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.
The COVID-19 pandemic highlighted the importance of accessible health benefits, fuelling interest in cash plans which are both affordable for employers and provide tangible benefits for employees.
But are they suitable for your business? Below, we examine the pros and cons of incorporating a health cash plan into your company's benefits offering.
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.
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.
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.
Compared to private medical insurance, health cash plans are typically more affordable and can be structured in various ways:
This flexibility allows organisations to choose a funding method that suits their budget while still delivering value to employees.
Many health cash plans now include supplementary benefits that extend beyond traditional healthcare, such as online GP services with 24/7 access, employee discount schemes for retail and leisure, and lifestyle assessments and coaching. These extras help create a more rounded employee benefits package
Unlike private medical insurance, health cash plans typically have relatively modest annual limits. For example, specialist consultations might be limited to £300-£600 per year, which may not cover the full cost of multiple consultations. HR leaders should be clear about these limitations in their communications to staff.
Some employees may not make full use of health cash plans because of a lack of awareness about available benefits, a reluctance to claim for small amounts and/or the effort required to submit claims. To combat this, organisations need to invest time in regular communication and education.
Implementing and managing a health cash plan involves ongoing admin such as processing new joiners and leavers, supporting employees with claims queries, managing communications, and reviewing usage data and return on investment. Although many providers offer online claiming systems, there is still an administrative burden to consider. However, with a flexible benefits portal like FlexGenius, there is minimal administrative burden as everything is managed for you.
Health cash plans are designed to support day-to-day healthcare costs rather than major medical expenses. They typically don't cover:
This means they might need to be offered alongside other healthcare benefits.
When introducing a health cash plan, HR leaders need to consider how it fits within their existing benefits package. For example, is there any duplication? Could the budget be better spent on other benefits? How does it align with the overall wellbeing strategy? HR leaders should evaluate these questions to ensure the cash plan adds value and supports the broader goals of employee health and satisfaction.
Making the right decision
When considering whether to implement a health cash plan, HR leaders should:
Including a health cash plan in your employee benefits offering can provide meaningful day-to-day healthcare support that staff members can utilise frequently.
Despite certain constraints, the emphasis on prevention and easy access to services makes them compelling for numerous businesses. Success lies in integrating them effectively with your wider benefits approach and ensuring clear communication to optimise their impact for both your company and your workforce.
Powered by Avantus, our FlexGenius portal offers company-paid and employee-paid health cash plans. Book a free demo or contact us at enquiries@avantus.co.uk to learn more.