Health care plan – Buying guide

Few things are more important to the health of your business than the health of your employees. And with the trend towards shrinking and closing NHS hospitals, Private Medical Insurance (PMI) plans for businesses are assuming a larger role in ensuring the health and well-being of your employees.

If you’re already in business then you probably already have a PMI plan for your employees. But if your plan is up for renewal and you’re shopping for a better business health insurance deal then you’re in luck; major UK Healthcare providers are ready to take care of all the administrative steps needed to switch you to one of their plans – often with no interruption to your coverage during the transition.

Which small business health insurance plan?

Private Medical Insurance plans are available for businesses of all sizes, and your choice will be determined by the number of employees you wish to cover. Whether you’re a sole trader looking for coverage for yourself, or you run a small or medium-size business and need a group health insurance plan for your employees, or you are in charge of administering a health plan for a large corporation, there is a PMI plan for you.

PMI plans cover basic treatments, surgery, consultations and nursing; optional coverage is also available for dental and optical care, preventive health assessments, and cash plans which enable employees to claim money back for everyday healthcare costs. But beware: PMI plans do not cover accidents or emergency care. In any case you will need to look carefully at the policies proposed by various providers.

How PMI plans are underwritten

Private healthcare coverage varies in its handling of pre-existing medical conditions. PMI plans will be based on one or the other of two underwriting methods:

• Full medical underwriting: these health insurance plans require those covered to complete a detailed questionnaire to disclose their full medical history, which the health insurer will review and decide if coverage should be restricted and to what extent. If you have employees with pre-existing conditions, this option will allow you to know exactly what the plan covers.
• Moratorium underwriting: these health insurance plans involved no disclosure but impose blanket restrictions on any medical conditions for which those insured have sought medical advice over the past five years. This is a good choice if your employees have no pre-existing conditions.

Moratorium plans are generally less expensive than fully underwritten plans, but any medical problems later discovered which are shown to have originated during the moratorium period will not be covered.

How much do they cost?

The cost of your business group health insurance plan will depend on the number of employees covered as well as their ages and health status. The Association of British Insurers (ABI) offers a best practices guide which explains the roles and responsibilities of insurers, employers and employees in a healthcare plan.

The best way to evaluate health insurance plans for your business is to compare the offers of various providers. The form at the top of this article is a great place to start; just describe your circumstances and you will receive free quotes from carefully qualified private healthcare providers within 48 hours.