A Guide to Corporate Health Insurance

Corporate health insurance is well-circulated amongst professionals as being one of the job’s best perks.

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Corporate health insurance is well-circulated amongst professionals as being one of the job’s best perks. Growing businesses seek to take out policies to offer their employees not only for their health and safety but also to better the

But are the nuances behind corporate health insurance? Can my business afford policies for all my employees? This guide will walk you through everything you need to know about corporate health insurance.

What is Corporate Health Insurance?

Corporate health insurance is a type of private medical insurance that offers employees, directors, and shareholders coverage for some or all personal health care costs.

In contrast to small business health insurance, corporate health insurance aligns with a more extensive employee base that can range from over 250 to the 1000s. It’s usually incorporated into the business to offer staff perks of joining
the company and protect personnel from any illness or injury during their time in the enterprise.

Corporate health insurance typically covers a large spectrum of health care for employees, including mental health and dental. Those sectors are ones not usually found in individual or other insurance policies. The extensive access to
private medical services arguably keeps the workplace happier and healthier.

However, given the high cost of corporate health insurance, business owners may ponder whether it is necessary for their company?

Do I Need Corporate Health Insurance for My Business?

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No, business owners do not need corporate health insurance, nor is it a legal requirement to have in your company. However, some of the world’s most prominent businesses leverage the perks of these policies to
create a more attractive work environment.

The operation perks of a corporate health insurance policy can benefit the business, too. Access to private health care minimizes the need for employees to spend lengthy times on NHS waiting lists and gets them back to work quicker.

We can look at ample reasons why most large businesses take out corporate health insurance policies.

Why Take Out a Corporate Health Insurance Policy?

It may seem beneficial to your budget to omit a corporate insurance policy. However, the reality is that the positives of coverage greatly outweigh the concerns.

Let’s review the core reasons corporations seek private medical insurance for their staff.

Reduce the Number of Sick Days

Staff will inevitably fall ill or have an injury. When acute conditions occur, the employee may have to take extended time off of work because they need NHS diagnosis and treatments, which can take a long time.

Access to private medical care minimizes the time away from work, giving employees access to fast, efficient, and effective healthcare. Corporate health insurance keeps productivity in your business flowing.

Stops Employees Coming to Work When Sick

We live in a world where many employees will show up to the jobs through thick or thin to make a good impression. That includes when they may feel ill. As respectable as that notion is, that illness could cause others to contract the
condition, leaving more people away from work.

Employees with access to private medical services could see their ailment resolved quickly. It minimizes their time away from work and returning to work to do their best.

Attract the Best Staff

Should employees know that your company’s health care needs get covered, the business will become an attractive prospect to the finest minds in the industry. Private medical insurance is a fantastic perk. The more comprehensive the
coverage, the more likely the best employees will join and stay with your team.

Increased Job Satisfaction

And stemming from the idea of attracting the best and brightest, those employees will have arguably better job satisfaction. Having their medical needs covered privately removes any health care burdens, ultimately leading to staff
enjoying their time in the workplace.

So we understand why it’s a good idea to take out a corporate health insurance policy for your business. But are there any other benefits directly relating to the work environment?

The Employee Benefits of Corporate Health Insurance

It’s no secret that corporate working environments can be physically and emotionally burdensome. That’s considering workloads, the pace of business, and the increasing demand for service.

Over half of UK corporate employees reported stress in 2020, leading to other physical ailments like ulcers, heart disease, and other mental health conditions. Access to private health services to remedy these conditions is one of the
biggest perks of working at these employees’ respective firms.

Employees highlight the benefits of corporate health insurance as being:

  • Giving employees more peace of mind

  • Enjoying much shorter waiting times for treatments

  • Improved well-being

  • Feeling valued by their organization

  • Increased motivation and productivity

  • Instant access to virtual health services or resources outside working hours

Employees are the lifeblood of any business, and corporate health insurance plays a significant role in keeping them happy. That validates why taking out a policy would be beneficial for everyone.

But what is the extent of private medical services that corporate health insurance will cover?

What Does Corporate Health Insurance Cover?

Individual and small business health insurance policies offer three tiers of coverage to make costs more accessible to these entities. However, corporate health insurance tends to cover a much larger spectrum of services, even going
beyond those found in comprehensive packages.

Corporate health insurance policies offer both inpatient and outpatient cover, which will include:

  • Surgeries

  • Consultations

  • Diagnostic Tests (MRIs, CT Scans, X-Rays)

  • Overnight Hospital Stays

  • Therapies (Physiotherapies, Osteotherapies, et al.)

  • Advanced Medicines (not usually found on the NHS)

  • Alternative Therapies (Chiropractic, Acupuncture, et al.)

Employees will also enjoy the added benefits of private health care, including:

  • Choice of private medical facilities and consultants

  • Unlimited visiting hours

  • Shorter times for treatment

  • Flexible appointment scheduling

Corporate health insurance even integrates further coverage to ensure employee welfare around the clock. Many policies will feature additional services in the plan, including virtual GP consultations.

Virtual GP Services

One of the more innovative features of current corporate health insurance policies is virtual private GP services. Employees can enjoy consultations through their smartphones, tablets, or computers 24/7 in many cases.

Employees can get their health concerns relieved faster without waiting on NHS virtual portals. Some insurers will also offer add-ons that allow prescriptions issued virtually by private GPs to get coverage.

What Does Not Get Covered by Corporate Health Insurance?

Even though corporate health insurance is quite extensive, there are certain aspects that policies won’t cover. These plans don’t cover chronic or preexisting conditions in line with most other health

It’s also unlikely that the policy will cover the following:

  • Emergency care

  • Kidney dialysis

  • Pregnancies (complications may get coverage)

  • Fertility treatments

  • Rehabilitation for alcohol or substance abuse

  • Non-necessary cosmetic surgery

There are instances where insurers might over some of the above as an add-on. Speak to your broker or insurer should you wish to include cover for conditions or circumstances not usually considered standard.

So which businesses are eligible for corporate health insurance? Are there any prerequisites to taking out a policy?

Who is Eligible for Corporate Health Insurance?

In terms of businesses, there are rarely any prerequisites to taking out a corporate health insurance policy for your company. Given the cost of providing comprehensive insurance to all employees, usually,
organizations with more than 250 employees and significant revenue take out corporate health insurance policies.

Not all insurers have the same rules and regulations about their corporate medical insurance plans, in any case. Speak with your insurer to ensure your business is qualified if you find a suitable method.

Should you take out a policy for your business, who would be eligible in the company? Insurers make it easy to add or remove employees from plans. However, most corporations will have a probation period when starting a new job before
offering private medical care access to their employees.

So should an employee commit to the business and qualify for company health insurance, they may inquire whether their families can get coverage.

Can Families of Employees Get on the Policies?

In most cases, it will be possible to add the immediate families of the company employee into the private health insurance plan. That means your spouse and children get coverage for their acute conditions.

It’s yet another perk that will make working at your company an attractive prospect, as employees can lift the burden of accessible medical care for their loved ones.

Some policies can differ, so speak to your insurer if families get covered by corporate health insurance.

So now, the extent and benefits of corporate health insurance have been highlighted. How much can a business expect to pay for the policy?

How Much Will Corporate Health Insurance Cost?

It is not easy to pin down the cost per employee for corporate health insurance. That’s because the premiums get determined by a variety of factors.

What Factors Determine the Cost of Corporate Medical Insurance?

Employee demographics and the extent of coverage incorporated in health insurance policies are crucial in how much the premiums will cost. Some determining factors include:

  • The location of the business offices

  • Average employee age

  • Chosen medical underwriting

  • Private medical facilities in the network

  • Average claims of your employees

  • Outpatient coverage limits

  • How many employees in the business

While premiums can fluctuate depending on these factors, we can give a rough example of the costs.

Examples of Corporate Health Insurance Costs Per Person

The example below follows an assumed scenario where a corporation takes out a policy. The coverage for the company employee includes:

  • A £1000 outpatient cap

  • £100 in excess (amount paid upfront by the employee)

  • A limited number of hospitals they can visit in their respective city

That means, on average, companies will pay the following costs per person:

  • 50 employees – about £35 a month per person

  • 100 employees – about £29 a month per person

  • 150 employees – about £22 a month per person

Again, these are assumed numbers. Please speak to your insurer or broker to understand the complete breakdown of costs per employee depending on how much coverage you offer them.

As you can see, more employees in your business generally mean that you’ll receive more significant discounts on your policies. However, it may still be a concern that these costs aren’t affordable to your company.

Are there any alternatives to corporate medical insurance to lower the costs?

The Less Expensive Alternative to Corporate Health Insurance

A business may grow its employee base to significant levels but isn’t quite ready to commit to corporate health insurance. The coverage of these policies is ultimately beneficial for a growing business. However, 
there’s a more affordable alternative in a corporate health cash plan.

The gist of this alternative is that the company will reimburse any employee requiring medical attention for specific amounts in both private and NHS care. Many insurers will work with companies to develop this kind of policy.

But given today’s competitive business environment, most growing companies will manage to find a corporate health insurance plan that suits their needs and their budget.

A Summary of Corporate Health Insurance

So with all that information about corporate medical insurance, let’s summarize the essential knowledge about the policies.

  • Corporate health insurance is coverage that gives private medical care access for your many employees

  • It’s not necessary or a legal requirement to have corporate health insurance

  • Many businesses adopt policies to make their company an attractive place to work

  • Corporate health insurance can have a positive impact on workflow and productivity

  • Policies are usually more comprehensive than other health insurance plans

  • Any business is eligible for corporate health insurance

  • Families of employees can also get on the plan

  • Costs per employee vary on company employee demographics and level of cover

  • There are cheaper alternatives to corporate health insurance, but most growing businesses will find a policy to suit

Should you have any questions, queries, or concerns about corporate health insurance, speak to your insurer or broker. They will be happy to expand on any of the information in the guide or find a policy suited to your large business.