Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Health Insurance
Corporate health and wellbeing covers the private medical insurance, cash plans, and support programmes employers use to keep staff healthy and reduce sickness absence. This guide explains the options, typical costs, and how to choose the right package for your business.
Corporate health and wellbeing is the range of benefits, programmes, and support that employers provide to look after their employees' physical, mental, and financial health. It goes beyond statutory requirements like sick pay to build a broader system of support, and might also be called workplace wellbeing, employee health benefits, or corporate wellness.
The right combination depends on your budget, workforce demographics, and what you're trying to achieve, whether that's reducing sickness absence, supporting recruitment, or meeting your duty of care to staff.
Corporate health and wellbeing refers to the range of benefits, programmes, and initiatives employers provide to support their employees' physical, mental, and financial health. It goes beyond basic statutory requirements like sick pay and pension contributions to create a broader system of support for your workforce.
You might also hear it called workplace wellbeing, employee health benefits, or corporate wellness programmes. Whatever the terminology, the purpose stays the same: helping employees stay healthy, reducing sickness absence, and building a workplace where people can thrive.
A typical corporate health and wellbeing strategy might include:
Example: a Manchester-based tech company with 45 employees introduced a package combining group private medical insurance (in the £40-£60 per employee per month range) with a health cash plan (around £5-£10 per employee per month). Within the first year, they reported a meaningful drop in sick days and improved scores on their employee satisfaction survey, with the annual investment more than offset by reduced absence costs and better retention.
If budget is tight, you don't need private medical insurance to make a difference. An Employee Assistance Programme combined with a health cash plan costs a fraction of full private medical cover and still gives employees tangible, frequently used support.
The business case for investing in employee health has never been stronger. Several factors are pushing UK employers to prioritise wellbeing benefits, from strained NHS capacity to a more competitive job market.
The business case
Corporate wellbeing isn't one-size-fits-all. Different benefits serve different purposes, and the right combination depends on your budget, workforce demographics, and company culture.
Private medical insurance is the flagship corporate health benefit. It gives employees fast access to private consultants, scans, and treatment without NHS waiting times. Most policies cover:
Typical costs: £25-£80 per employee per month for standard cover, rising to £90-£150+ for comprehensive policies including outpatient benefits.
Best for: businesses wanting to reduce absence from serious health issues and attract strong candidates.
Health cash plans work differently from insurance. Instead of covering major medical treatment, they reimburse employees for everyday healthcare costs. Submit a receipt for a dental check-up, eye test, or physiotherapy session, and receive cashback up to your annual limit.
Typical coverage includes:
Typical costs: £4-£25 per employee per month depending on cover levels.
Best for: businesses wanting an affordable way to support employee health, particularly if full private medical insurance isn't in budget.
EAPs provide confidential support for employees dealing with personal or work-related problems. They typically include a 24/7 helpline staffed by trained counsellors, plus structured counselling sessions for those who need more support.
According to the UK Employee Assistance Professionals Association, EAP services are now available to an estimated 24.45 million employees across more than 105,000 organisations, covering around 75% of the workforce.
Common EAP services include:
Typical costs: £10-£20 per employee per year for basic cover, more for enhanced programmes.
Best for: every business. EAPs offer strong value and work as a standalone benefit or alongside health insurance.
Beyond EAPs, many employers now offer dedicated mental health benefits, including:
The CIPD found that mental health remains a key focus of organisations' health and wellbeing activity, with 89% of employers prioritising it.
Modern wellbeing programmes often include broader lifestyle support:
Some insurers integrate these into their health insurance policies, rewarding healthy behaviours with lower premiums and perks.
Before buying an EAP separately, check what's already bundled with your health insurance or cash plan. Many providers now include a basic EAP as standard, so you might already have this cover without realising it.
Group cover
An advisor can compare private medical insurance, cash plans, and EAPs to help you find the right combination for your budget.
Understanding the true cost of corporate health benefits helps you budget effectively and make informed decisions.
Corporate health insurance pricing depends on several factors:
Typical price ranges:
For a company with 20 employees averaging age 40, expect to pay roughly £800-£1,400 per month for mid-range cover, or £9,600-£16,800 annually.
Cash plans are considerably more affordable:
A 20-person company could provide health cash plans for as little as £1,920-£6,000 a year.
Employee Assistance Programmes offer strong value:
For that same 20-person company, EAP costs would range from £160-£600 a year.
Business health insurance premiums are generally corporation tax deductible as a legitimate business expense. But employees receiving the benefit pay income tax on its value, as it's classed as a benefit in kind and must be reported on P11D forms.
Most employees consider this a worthwhile trade-off for the benefit received.
Investing in employee wellbeing can deliver returns across several areas of the business.
The most direct benefit is fewer sick days. When employees can access treatment quickly rather than waiting months on NHS lists, they recover faster and return to work sooner. Private health insurance typically means seeing a specialist within days rather than weeks.
The CIPD found that 36% of organisations with employees working from home report decreased sickness absence, suggesting that flexible working combined with health support creates compounding benefits.
Employees who feel supported tend to perform better. The government's Thriving at Work review estimated a return of £4.20 for every £1 spent on mental health interventions, and poor mental health costs UK employers significantly each year through reduced productivity, even when staff are physically present.
In a competitive job market, benefits packages matter. Comprehensive health cover can differentiate you from competitors and help attract candidates who might otherwise choose larger companies with established benefits.
For retention, employees with good benefits are less likely to leave. The cost of replacing an employee, including recruitment, training, and lost productivity, typically runs to several months' salary, making retention-focused benefits a sound investment.
UK employers have a legal duty of care to support employee wellbeing under the Health and Safety at Work etc. Act. While EAPs and health insurance aren't legally required, they demonstrate genuine commitment to this duty.
With people working longer, health needs increase with age. Corporate health benefits help manage conditions that become more common in older workers, keeping experienced employees productive rather than losing them to ill health.
The return on wellbeing spending is easiest to see in retention. Replacing an experienced employee typically costs several months of their salary once you factor in recruitment, training, and lost productivity, so even a modest benefits package can pay for itself several times over.
The right approach varies depending on whether you're a startup, growing SME, or larger organisation.
By headcount
Startups and micro-businesses (1-10 employees)
With tight budgets, focus on high-value, low-cost options. An EAP is affordable at £10-£15 per employee per year, and a health cash plan adds tangible benefits from £5-£10 per employee per month. Many startups begin with these two and add private medical insurance as they grow.
Small businesses (11-50 employees)
Full private medical insurance becomes more feasible at this size. Group schemes from providers like Aviva and Bupa work well, and it's worth considering tiered cover, enhanced for senior roles and standard for others, plus a stronger focus on mental health cover.
Medium businesses (51-250 employees)
Larger teams justify more sophisticated approaches, including flexible benefits where employees choose what suits them, Medical History Disregarded underwriting to cover pre-existing conditions, occupational health integration, and using claims data to spot workforce health issues.
Corporate and enterprise (250+ employees)
Large organisations can negotiate bespoke arrangements, including enhanced corporate schemes, global coverage for international teams, wellbeing programmes integrated across HR systems, and onsite health services or screenings.
The UK market includes several major insurers and specialists. Here's how they compare.
The UK's largest private health insurer, Bupa owns hospitals and clinics alongside providing insurance. Their SME plans cover 2-249 employees with strong mental health support and 24/7 digital GP access. Known for comprehensive cover, though not always the cheapest option.
Aviva's Solutions plan is designed specifically for SMEs, combining competitive pricing with comprehensive cover including cancer care and mental health as standard. Often a strong option for small businesses wanting straightforward, quality cover.
Strong on wellbeing integration, AXA combines traditional health insurance with preventive programmes. Good for businesses wanting to encourage healthy behaviours alongside treatment cover.
A rewards-based model that incentivises healthy behaviours with gym discounts, technology rewards, and lower premiums for active members. Appeals to younger, health-conscious workforces, though the rewards programme adds complexity.
A not-for-profit provider focused on service rather than shareholder returns. Known for flexibility, though policies can be harder to compare like-for-like with larger insurers.
Major EAP providers include Health Assured, PAM Assist, and Optima Health. Many health insurers also bundle an EAP with their policies, so check whether yours already includes one before buying separately.
Health cash plan providers
Implementing a wellbeing strategy takes more planning than simply buying a policy. Before choosing benefits, it helps to understand your starting point: your current sickness absence rate, the main causes of absence, what you already offer, your budget, and what employees actually want. Employee surveys can reveal surprising insights, you might assume everyone wants gym memberships when mental health support is actually the priority.
How it works
Assess your current position
Understand your sickness absence rate, its main causes, what benefits you already offer, your budget, and what employees actually want.
Define your objectives
Be clear about what you're trying to achieve, whether that's reducing sickness absence, improving satisfaction scores, supporting recruitment, or meeting duty of care obligations.
Choose appropriate benefits
Match benefits to your objectives and budget: an EAP plus cash plan for limited budgets, private medical insurance if absence reduction is the priority, or a comprehensive package if recruitment is the focus.
Get quotes and compare
Don't accept the first quote. An advisor can compare options across multiple providers and negotiate on your behalf.
Communicate effectively
Explain clearly what's covered, how to access each benefit, who to contact with questions, and any costs or tax implications. Many providers offer launch materials to help.
Encourage engagement
Remind staff about services like the EAP regularly, celebrate when employees use preventive care, and share anonymous usage data to demonstrate value.
Review annually
At renewal, check whether absence has changed, how the claims experience has been, whether employees are satisfied, and whether your workforce has changed enough to adjust cover.
While the benefits are significant, there are considerations to keep in mind.
Standard private medical insurance doesn't cover pre-existing conditions. If an employee has diabetes, a previous back injury, or an ongoing mental health issue, these typically won't be covered. It's worth communicating this clearly to avoid disappointment.
Health insurance provided by employers is taxable for employees. While the benefit usually outweighs the tax cost, some employees on tight budgets might prefer higher salary instead. Offering flexible benefits lets people choose.
Health insurance premiums tend to increase annually, driven by medical inflation, claims experience, and an ageing workforce. Budget for 5-10% annual increases and review regularly to make sure you're still getting value.
Even comprehensive policies have exclusions. Typical limitations include:
Make sure employees understand what's covered before they need to claim.
Managing health benefits creates ongoing work: processing joiners and leavers, handling P11D reporting, answering employee questions, and managing renewals. Consider whether you have capacity internally or need broker support.
Larger groups can sometimes access Medical History Disregarded underwriting, which does cover pre-existing conditions, but it comes at a higher premium. Whether it's worth it depends on how many employees are likely to have conditions that would otherwise be excluded.
Corporate health benefits aren't the only way to support employee wellbeing.
Advantages of private cover:
Advantages of NHS reliance:
Many businesses use a combination: private cover for conditions where speed matters, the NHS for everything else.
Choose health insurance if:
Choose health cash plans if:
Many businesses combine both: insurance for serious conditions, cash plans for everyday healthcare.
Large organisations sometimes bring wellbeing services in-house with occupational health teams, onsite gyms, and internal counsellors. This can work well at scale, but rarely makes sense for SMEs, where outsourced providers tend to offer better value and specialist expertise.
Independent guidance on health insurance and financial decisions from regulated and government-backed organisations.
Common questions
Corporate health and wellbeing encompasses all the benefits, programmes, and initiatives employers provide to support employee health. This includes private medical insurance, health cash plans, Employee Assistance Programmes, mental health support, wellness apps, and fitness benefits. The goal is keeping employees healthy, reducing sickness absence, and creating a supportive workplace culture.
Corporate health insurance typically costs between £25 and £150 per employee per month in the UK. Basic cover starts around £25-£40 monthly, mid-range plans with outpatient benefits cost £40-£80, and comprehensive cover with mental health and therapies can exceed £100 per employee per month. Costs depend on employee ages, location, cover level, and group size.
Yes, corporate health insurance premiums are generally treated as a legitimate business expense and can be claimed against corporation tax. But employees receiving the benefit must pay income tax on its value as it's classified as a benefit in kind. This is reported through P11D forms at the end of each tax year.
Health insurance covers the cost of private medical treatment, surgery, and hospital stays. Health cash plans are different. They pay fixed amounts towards everyday health costs like dental check-ups, eye tests, physiotherapy, and prescriptions. Cash plans are much cheaper, often under £20 per month, but don't cover hospital treatment or surgery. Some people have both.
Small businesses don't legally need to provide health insurance, but it can deliver significant benefits including reduced absence, improved recruitment, and better employee retention. Many SMEs start with affordable options like EAPs and health cash plans, adding comprehensive insurance as budgets allow.
EAPs typically include 24/7 confidential helplines staffed by trained counsellors, structured counselling sessions (usually 6-8 per issue), legal and financial guidance, debt advice, bereavement support, and online resources. Some enhanced programmes add manager training, critical incident support, and wellbeing portals.
Private health insurance provided by employers is a taxable benefit in kind. Employers must report the cash equivalent value on each employee's P11D form, and employees pay income tax on this amount at their marginal rate. For example, if insurance costs £600 annually and the employee pays 20% tax, they'll owe an additional £120 in tax.
Yes, director-only health insurance is available and can work well for small businesses. The company pays premiums as a business expense, and directors receive the benefit. This is often a sensible first step before extending cover to all employees.
Standard corporate health insurance typically excludes pre-existing conditions, chronic disease management, cosmetic procedures, fertility treatment, routine pregnancy care, and dental and optical care unless specifically added. Always check policy terms carefully and communicate exclusions clearly to employees.
The most effective approach is speaking to an advisor who can compare quotes across a wide range of providers and explain the trade-offs. Key comparison points include cover levels, mental health provisions, network hospitals, excess amounts, virtual GP access, and additional wellbeing services. Don't just compare headline prices, as policy terms vary significantly.
Most insurers offer group schemes starting from just 2 employees, with some accepting single-director policies. True SME schemes typically cover 2-249 employees, with different underwriting approaches and pricing structures for larger groups.
Mental health coverage varies by policy. Many modern policies include some mental health provision, but the extent differs significantly. Some offer comprehensive psychiatric and psychological treatment, others provide limited outpatient counselling. Check specifically what's included, as mental health has become a key differentiator between policies.
With private health insurance, employees can typically see a consultant within days of referral, compared to weeks or months on the NHS. For routine diagnostics and treatment, most insurers aim for appointments within 1-2 weeks. Emergency care remains an NHS responsibility.
Many policies allow employees to add spouses, partners, and children at additional cost. This can be employer-funded, employee-funded through salary sacrifice, or a combination. Family cover typically costs less per person than individual policies due to group buying power.
When employees leave your company, their cover typically ends with their employment. Most insurers offer continuation options allowing leavers to take out individual policies at favourable rates, though they'll need to apply and may face underwriting.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Health Insurance
Protect what matters most. Our advisors compare plans from leading UK health insurance providers.
