The latest figures from healthcare market intelligence provider LaingBuisson have revealed that the number of private medical cover policies grew in 2015 for the first time since 2008 and that the growth was largely driven by an 8% increase in membership of self-insured healthcare trust schemes, with a 0.4% increase in private medical insurance policies.
LaingBuisson report that Healthcare Trust schemes paid out £690 million in claims in 2015, an increase of 7% on the previous year, as the self-insured market reached a new high.
With affordability being one of the key concerns of employers looking to provide private medical cover for their employees, the tax-efficiency of healthcare trusts makes them an attractive proposition. As they are not an insurance policy, they do not attract Insurance Premium Tax (IPT) and with IPT having increased from 6% to 9.5% in November 2015 and to 10% in October 2016 with a further rise to 12% in the pipeline from June 2017, the savings can be significant and increased interest in healthcare trusts is likely to continue.
Healix Healthcare Trusts offer many other advantages too
At Healix, one of the biggest advantages to employers is the fact that all healthcare trust claims are managed by nurse case managers rather than insurance claims administrators. Their medical expertise and empathy with the ‘claimant’ not only provides a much more reassuring experience for employees which reflects well upon the employer, but also ensures that the correct care pathway is followed and medical costs are correctly managed.
In addition to their tax-efficiency, healthcare trusts allow greater flexibility in scheme design with benefits tailored to suit the employer’s requirements and different levels of cover possible for different groups of employees if required. Another big advantage is that the employer retains funds when claims are lower than anticipated rather than an insurer taking extra profit and the employer can elect to be protected from claims exceeding their budget through the use of Stop Loss Insurance so any risk can be mitigated.
It is also possible to incorporate other health related benefits such as cash plan and dental benefits within the healthcare trust and if required, Healix nurses can also act as a central hub co-ordinating provision with other overlapping services such as an EAP or Income Protection, directing employees to the most appropriate benefit. This ensures fully integrated healthcare provision and the most effective use of an employer’s overall healthcare budget.
The flexibility and bespoke nature of a healthcare trust also allows for better long term planning and future proofing of healthcare spend.
- Lower cost to employer
- Lower P11d rate for employees
- Superior nurse-led claims service
- No ‘Open Referral’ or hospital restrictions
- Flexibility in scheme design
- Employer retains funds in low claim years
- Costs capped in high claim years
- Tax efficient
- Other health and wellbeing benefits can be integrated for optimum use of budget
Click here for more information on Healix Corporate Healthcare Trusts