Corporate health insurance
A guide to providing health coverage for larger UK companies, helping you support staff wellbeing and expand your benefits package.
What is corporate health insurance?
Corporate health insurance is a group health plan that provides medical coverage for employees and, in some cases, their families. Unlike individual health insurance plans that staff might buy themselves, corporate health insurance is arranged by the company as a benefit.
It typically covers a range of healthcare services, like doctor visits, hospital stays, prescriptions, and mental health support. A key feature is that it offers group rates, which usually works out much cheaper for staff compared to individual coverage. The company usually pays the bulk of the premium, though staff may still contribute a portion.
By offering coverage to a large team at once, you can give employees easy access to healthcare while controlling costs.
Why smart firms invest in employee health
Let's look at some of the key benefits for your staff and your business:
Attract and keep top talent
One of the main reasons businesses offer corporate health insurance is to attract and retain the best staff. These days, job seekers aren't just looking for competitive salaries but for benefits like healthcare coverage. Offering a full health plan helps you stand out in a competitive job market and attract top candidates.
Employee productivity and morale
Health insurance isn't just about managing illness - it's about overall wellbeing. When your employees are covered, they're more likely to stay healthier and miss fewer days at work. They'll also feel more supported by your company, which can mean better morale and motivation among the team.
Tax savings for the company
Offering corporate health insurance can also have tax advantages. In the UK, businesses can often deduct the cost of health insurance premiums as a business expense. This can reduce the company's overall tax bill, making the investment even better for your bottom line.
Types of corporate health insurance
There are several different types of health insurance you can offer - here are the main ones:
Private medical insurance (PMI)
Private medical insurance lets staff get faster access to healthcare services, bypassing long NHS wait times. With PMI, employees can also see specialists quicker, stay in private rooms, and get faster diagnostics. Policies can cover everything from hospital stays and mental health support to gym memberships and wellness programmes.
Health cash plans
Rather than covering more serious medical situations, health cash plans help employees pay for everyday health costs like visits to the dentist, optician, and physiotherapist. It's an affordable option that lets employees take charge of their health without high out-of-pocket costs. Staff get cashback for common health expenses up to a certain limit, making it easier to stay healthy.
Employee assistance programmes (EAPs)
These are increasingly common in the UK, offering confidential support services to help employees manage personal and work-related issues. These include counselling, legal advice, and financial support. The aim is to improve employee well-being, reduce stress, and boost productivity.
Critical illness cover
Critical illness cover can be a vital employee benefit in difficult times. It gives staff a lump sum payment if they suffer a serious illness, such as cancer, heart attack, or stroke. It helps cover medical expenses or loss of income while they focus on getting well.
Income protection
This gives your staff a regular income if they can't work because of an illness or injury. Income protection replaces a percentage of their lost wages for a set period. It offers peace of mind and helps employees keep their lifestyle and meet their commitments while they're away.
Summing up
Corporate health insurance can be a game-changer for your business. It's not just about offering your employees medical coverage, it's also about attracting and retaining the best staff, boosting productivity, and improving morale. By offering a plan, you're investing in your team's wellbeing while potentially getting tax benefits and a healthier workforce.
Frequently Asked Questions
What does private health insurance cover for employees?
Private health insurance typically covers time in private hospitals and quicker access to specialists. Many plans also offer additional benefits like dental care and wellbeing services, so that staff can keep on top of their overall health. Others may include income protection to support your team financially if they're unable to work due to illness.
How is corporate healthcare different to small business health insurance?
Corporate healthcare plans are designed for larger companies and offer more flexibility and more coverage compared to small business health insurance. Plans typically cover everything from GP visits to specialist treatment and may include mental wellbeing support services. They also offer more comprehensive private healthcare, which might include dental care, physiotherapy, and other benefits.
Can private medical insurance cover pre-existing conditions?
Many insurance providers exclude pre-existing conditions from their health cover, meaning any related medical treatment might not be covered. Some offer special plans or add-ons that may provide limited coverage for certain pre-existing conditions after a waiting period. The scope of coverage for things like specialist treatment, mental wellbeing services, or other healthcare needs can also vary widely.
About the author
Lawrence Howlett
Lawrence Howlett brings a results-driven mindset to his writing, shaped by over a decade of experience across finance, legal, and energy sectors. As the founder of Moneysavingadvisors, he’s built a reputation for turning complex financial concepts into clear, actionable insights for consumers. His writing stands out for its clarity, structure, and focus on delivering value.
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