The Key Benefits of a Health Cash Plan for Employees
I feel sentimental toward the subject matter of this particular blog. I have been working with and seeing how businesses have benefited from this type of health cover for almost a quarter of my life now.
Before I can talk about the benefits a cash plan can make to your business, I think it would be beneficial for you to hear some real-life perspective on how a health cash plan can support employees.
Over the past 5 years, I had some pretty challenging events happen - ranging from supporting my sister through her partner’s suicide, being made redundant twice, an ectopic pregnancy, a breast cancer scare, and starting a new business.
My cash plan has been there for me throughout all of these events and when I have needed the advice to deal with some of these issues - I have had access to financial, legal, health, and wellbeing advice.
In addition to this, I have downloaded meditations to help with anxiety and have been able to speak to a GP over the phone when things were particularly hard. Additionally, by helping support me, my employer enabled me to be there for my sister.
That type of support is way more valuable than a bonus could ever have been at the time.
I have utilized my cash plan in countless ways, it has provided information that has allowed me to regain control. Help and advice around self-care and in the moment counselling. My cash plan reminds me of what well-being is. Simply by being there… when I need it.
A health cash plan is a policy that can help to cover the cost of everyday healthcare, like visits to the dentist, opticians, or physiotherapy, by reimbursing your employees for some or all of the cost of routine and/or unforeseen healthcare costs and appointments.
More than this, it is a gateway to preventative health changes. We know that there are likely to be waiting lists following the end of the pandemic.
We know that mental health issues have and will continue to increase because of the anxiety and isolation that has been caused by the pandemic. We also know that 80% of the conditions presented to the NHS are conditions that are preventable by leading a healthier lifestyle.
Health Cash Plans are available for a monthly premium and are an affordable, simple, and accessible way of helping your employees to manage the cost of everyday healthcare.
But what are the key benefits of health cash plans for your business?
Reducing Absence
The two main causes of absence are muscular skeletal and mental health related illness. Treatments for both are available within a standard company funded health plan.
Allowing quicker access to diagnosis and cash back on private treatments.
Consider the cost of absence in the last 12 months to your business. If you have this information then great, if not you can use the national average per employee which is £522.00 per person per year.
The average health cash plan would cost approximately 10% of this per year (dependent on employee size.) If you reduce health related absence - you save money, and the health cash plan pays for itself.
Flexibility Around Your Family
Most health cash plans will cover your employee’s children with the option for you to include their partner on the cover or for the employee to fund their partner by upgrading their plan.
Engagement and Technology
The range and scope of the digital advancements are powerful and include virtual appointments, skin cancer monitoring apps, AI that helps provide employees with CBT digitally, online claiming, and a lot more.
Most health cash plan providers will provide you with a calendar of electronic communications surrounding health and wellbeing days, events, and topics. Easily accessed and distributed to raise awareness and promote the company’s health cash plan.
Recruitment and Retention
Health cash plans have become more popular within industries that are looking to attract employees but are not able to offer above the average salary.
Social care and education have a big issue with retention and the cost associated with losing qualified and trained staff - the introduction of a health cash plan has helped organizations with this.
Duty Of Care
Eye tests for VDU users (who doesn’t use a VDU these days?) are covered by health cash plans. Employers are required to take all necessary precautions to ensure the physical and mental wellbeing of staff. An employer’s duty of care also extends to their mental health.
The Health and Safety at Work Act 1992 requires you to assess mental health work-related issues to measure the levels of risk to staff. A good EAP is usually available within a health cash plan.
Healthy Workplace Awards
We are in a new era - employee ambassadorship, corporate responsibility both new employee candidates and clients are discerning when looking at an employer or vendor. Demonstrating a healthy and proactive approach to your employee's health and wellbeing is important.
Some awards that look at employee health benefits include:
Conclusion
We hope that this has been useful and gives you an idea of the benefits a company-funded cash plan can have for your business and your employees.
There are several different providers that offer health cash plans available and as an independent broker, Pegasus Benefits can review the best policies for you.
Providing you with a comprehensive report that looks at all the factors important when choosing a new provider. Saving you time and giving you peace of mind that the benefit you choose is going to best support your business.
If you would like to book a discovery call to discuss your options, please feel free to book a fifteen-minute call by clicking here.