Private Medical Insurance (PMI) is experiencing a surge in demand, with a record 6.2 million people now covered in the UK.
According to the Association of British Insurers (ABI), PMI uptake rose by 7% in 2023, with employer schemes covering 4.7 million individuals—the highest level in over 30 years.
But what’s driving this growth, and how can businesses maximise the success of their company PMI schemes?
Are you considering a private health plan for your employees? Take advantage of our free quotation and advice service to find out how much it will cost. Use the chatbot on the right or call 01273 974419.
Why is PMI becoming more popular?
PMI is rapidly gaining traction in the UK, with millions opting for this coverage. Even younger people between 18 and 24 are more likely to use private medical insurance – thanks to their enthusiastic embrace of digital tools.
Some of the forces propelling this trend include:
Concern over increased NHS pressures
Private Healthcare Information Network (PHIN) data shows private hospital admissions hit a record 900,000 in 2023, a 7% increase from 2022. This surge is attributed to more people turning to private healthcare services due to escalating wait times within the NHS system.
A survey conducted by Vitality UK revealed that half of its customers cited long NHS wait times as their reason for investing in PMI.
With the increasing pressure faced by the NHS and its resources stretched thin, individuals and businesses are increasingly turning toward PMI for quicker access to treatments. This ensures employees can return to work faster after being sick or injured.
Additional medical treatments available
New drugs may be available via private health insurance that are currently available on the NHS. This is also true of homeopathy. Meanwhile, some treatments are only sparingly provided on the NHS, such acupuncture, which can be included on a private plan.
Increased flexibility
With PMI, employees can often choose where and when they want their treatment and select a schedule that fits their lifestyle. This flexibility helps their treatment plan meet their personal needs.
Quality of care
While the NHS provides a brilliant service, a privately health scheme can provide access to superior facilities. For example, private patients can often stay overnight in a private room rather than a busy ward. According to the Independent Healthcare Providers Network (IHPN), 18.7% of people believe PMI provides higher-quality treatments.
Economic impact
PMI is playing a crucial role in reducing economic inactivity. The ABI estimates that health insurance prevents 14 million sickness days annually, an amount comparable to the productivity of 12,500 full-time employees. This reinforces the government’s focus on improving workforce productivity through better health support.
Before investing in a policy or renewing your current scheme, make use of a full free review courtesy of our award-winning advisors at Engage Health Group. Call 01273 974419 or email [email protected].
How to guarantee success with your company PMI scheme
To make the most of your company health insurance policy, align it with your business goals and what your employees actually need. Here are some steps to help you make it a success:
- Tailor your coverage to suit your needs: Work with an experienced broker to design a scheme that fits your workforce. Consider employee demographics, job roles, and any specific health concerns.
- Promote benefits among employees: Employees can’t use what they don’t know exists. Communicate the benefits of your PMI scheme regularly through onboarding sessions, newsletters, and via one-on-one discussions.
- Take advantage of additional benefits: Many PMI providers include perks like Employee Assistance Programs (EAPs), virtual GP services, and mental health support. Highlight these features to ensure employees see the full value of their coverage. You don’t need to have a diagnosis or even be ill to benefit from some of these services!
- Review regularly: Review your PMI scheme’s performance and usage regularly. Use employee feedback to make adjustments where necessary. Enlist an impartial broker, like Engage Health Group, to perform a free policy review.
- Offload admin to a good brokerage: Too often HR or finance teams get tied up in the knotty admin associated with health insurance policies. But a good brokerage like Engage Health Group can take care of the admin for you at no extra charge.
Investing in Private Medical Insurance
By investing in a PMI scheme, businesses can enhance employee wellbeing, reduce absenteeism, and improve productivity. With the right approach, a PMI scheme can be a powerful tool for building a healthier, more resilient workforce.
If you’re considering implementing or refining a company PMI scheme, Engage Health Group can help you navigate your options and find the best solution for your team. Contact us today for more information.
