What is the difference between Health Cash Plans and PMI?
What is the difference between Health Cash Plans and PMI?
Medical insurance can be a minefield for companies and individuals. Acronyms, confusing words and medical terminology are enough to put anyone off looking into it. But it doesn’t have to be that difficult. So, what types of insurance are on offer in the UK? What are the features and benefits? And ultimately what makes them different?
What is a Health Cash Plan?
A Health Cash Plan is an affordable type of health insurance that provides refunds and payments for everyday medical expenses, such as a trip to the dentist or a new pair of glasses. It is a simple way for people to manage their healthcare expenditure.
In 2022, it was estimated that over 3.3 million UK adults were covered by a Health Cash Plan with over two in five of these being paid for by employers as a benefit to their staff. Whilst extremely popular as a company paid benefit, they can also be offered on a voluntary basis whereby the premiums are paid for by the employee or individual, rather than the company.
- Help to budget for everyday health care expenses
- Low monthly premium
- No excesses
- Choice to cover the whole family for added peace of mind
- Choice of the healthcare practitioner that you want to see, plus there is no need for a GP referral
- Will generally include access to counselling through an EAP
- Cover for pre-existing medical conditions
What Is Private Medical Insurance or PMI?
Private Medical Insurance, or PMI, is a type of insurance that generally gives you access to treatment, diagnostic tests, surgery and admission to private hospitals. The range of what is included on PMI can vary significantly between policies and coverage for pre-existing conditions depends on the terms offered by the insurer and the premium you pay.
Usually you would go through an insurance broker when taking out a PMI policy. The broker is there to explain the types of cover available, the differences and complete the application for cover alongside the prospective policyholder. Some of the largest providers of PMI include Bupa, AXA and Aviva.
- Timely access to healthcare
- Choice of healthcare providers and advanced treatment options
- High quality private-clinic and hospital accommodation
What is the difference in cost between a Health Cash Plan and PMI?
My Tribe Insurance says that the average cost of a PMI policy in the UK in 2024 was £79.59 per month, with premiums that increase annually based on the age and health of the policyholder. Health Cash Plans are much cheaper by comparison, with premiums starting from as little as £5 per month, going up in price depending on the cover chosen, with premiums generally remaining static based until policyholders hit retirement age.
From a tax perspective, the price of these policies has a big impact on their use as an employee benefit. The greater the premium, the greater the P11D cost to the employee the benefit is being provided to. This can be a factor for companies when determining which type of policy to provide to their employees.
How can My Health Xtras help with your company’s cash plan needs?
My Health Xtras can provide cash plans on both a company paid and voluntary basis, being flexible to the needs of your organisation.
As standard, our Health and Wellness Cash Plan covers:
- Dental
- Optical
- Treatments, Therapies and Consultations
- Inpatient hospitalisation
- Home Recovery
- Parental Overnight Hospital Stays
- New Child Benefit
- Prescription Refund
Added Xtras!
As well as this, on our company paid policies, we include access to an Employee Assistance Programme which offers counselling, legal, family and debt advice as well as access to our online portal which houses our claims section as well as 100’s of discounts and savings from some of the UK’s largest retailers.
We can also work with you to create bespoke covers based on your company’s needs. This could be enhancing certain areas of cover or adding a cancer or funeral benefit to the policy.
Want to know more? Contact Us here or call 01743 452337 to speak to someone about how we can help your company with a Health Cash Plan