How A Health Cash Plan Can Work For You
Written by: Jamie Hart
If you’re the FD, you want a healthy, upwardly mobile profit sheet. There will of course be many ways to achieve this and many pitfalls, however keeping your workforce healthy and productive is vital in helping you reach your financial objectives. Over to you HR!
Whether you have traditional benefits such as Private Medical or Income Protection and are struggling with ever increasing costs; are thinking about refining your benefit offering whilst sustaining value for your employees or if you are looking for the first time at cost effective benefits to engage and reward staff, Health Cash Plans can neatly fit into either space.
In a nutshell
A Health Cash Plan gives an individual cash payments that cover or help pay towards the cost of everyday healthcare. You pay for your treatment up front and submit your claim to the Cash Plan provider who will pay up to the agreed maximum for the benefit for which you are claiming.
The cost and the savings
Employer sponsored Cash Plans are available at varying pricing levels, typically tiered from level 1 to level 4, the higher the tier the greater the level of benefit. If you have 25+ employees Medicash will provide their Medicash Plus level 1 cover for each employee for £4.12 per month. Medicash calculate that on average an employee could save £250 per year by using their cash plans. If we look at Simply Health’s employer sponsored plan for 50+ employees, for level 2 cover at £.6.50 per month (£78 pa.) an employee by simply utilising the dental, optical and NHS prescription charges options the cash back saving would be £92.
Unlike most other insurance products, Cash Plans are designed to be used regularly to recover essential, everyday, healthcare expenses such as optical costs or dental treatment. As a consequence they can prove to be of particular value to lower wage earners and the just about managing (JAM) population.
Quick diagnosis and faster recovery
In a world of NHS waiting lists and two week waits for GP appointments, Cash Plans will cover specialist consultations, diagnostic tests and scans, including CT, MRI and PET scans, allow instant access to online GP services or second opinion doctor services. Cash Plans will also pay towards therapies, including traditional therapies such as sports massage and osteopathy as well as alternative therapies including reflexology and reiki.
The preventative option
Cash Plans will also help with payment towards prescriptions, inoculations, flu jabs, and even health screenings. Cash Plans will also provide access to telephone support helplines or employee assistance programs including in some cases face to face counselling.
Flexibility and the family
One of the key features of corporate Cash Plans is the flexibility to allow employees to increase their cover above the entry level should they wish to and to include spouses’ and partners. For example the Westfield Foresight plan starts at level 1 for £4.47 per month, this would allow you to claim £55 for optical treatment and £55 for dental. Moving through to level 4 at £26.86 you can claim up to £220 for optical and £220 for dental treatment. Corporate Cash Plans will also allow you to cover your children at no additional cost. Normally you would be able to claim up to 50% of your own cover for a child.
Engagement and technology
Absolutely pivotal to making a Cash Plan work for you and your employees is engagement. From the outset it is important that your employees know there is a cash plan available and how they can benefit from it. The best Cash Plan providers will happily engage with you and your staff to promote these benefits, whether this be through benefit fairs or staff presentations. Helm Godfrey will be happy to work on a communication strategy to ensure that engagement remains high. Once the plan is up and running the technology kicks in As you would expect everything you need can be found online from virtual GPs to apps that allow you claim directly via your phone.
Let Helm Godfrey help you
There are a number of Health Cash Plan providers and a myriad of options as to how to tailor your Cash Plan. Our expert Flex and Healthcare team can help you choose the right provider and plan to suit your needs and budget.
The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice. The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Occupational pension schemes are regulated by The Pensions Regulator.