Private medical insurance frequently tops the wish lists of workers when it comes to employee benefits.
Indeed, new research has illuminated the fact that staff are increasingly seeing PMI as a core part of any employment offering – and this sentiment is particularly strong among younger people, with almost seven in ten 18-24-year-olds saying they would be more likely to apply for a job where PMI forms part of their package.
But despite its widespread appeal, PMI still remains misunderstood by a large proportion of the employees it’s designed to support. Many don’t fully grasp how it supports their health and wellbeing within the wider context of the National Health Service, and there are gaps in knowledge about precisely what it does – and doesn’t – cover.
For employers, these myths and misconceptions can lay the foundations for confusion, dissatisfaction and poor engagement. And in the wider context of a competitive talent market, it can also translate to missed opportunities to attract and retain good people.
Here we look at some of the common areas of misunderstanding, providing insight into the communication challenges that companies might look to overcome in the interests of maximising their employer appeal.
“It’s the same as the NHS”
There are, in fact, significant and important differences between the care offered by the NHS and the services offered by private healthcare providers, accessed via PMI. Waiting times are typically far shorter in private settings and it is often possible to choose the clinic and sometimes even the consulting teams where treatment is provided. Depending on policy specifics, PMI might also cover procedures and therapies that are not available via the NHS. Private facilities do not, however, provide accident and emergency services – as such, PMI should be seen as augmenting or complementing the NHS.
“It’s only for minor illnesses”
PMI can provide cover for a wide span of conditions, from the comparatively minor to the more serious. The precise range of conditions covered will vary from policy to policy, with some provided as standard and some as optional extras, but it can include treatment for cancers as well as mental health conditions, such as anxiety. It is, however, true that PMI, in many cases, excludes treatment for long-term (chronic) conditions, such as asthma or diabetes, and for pre-existing conditions.
“I’ll still have to pay”
Again, a lot will depend on the specifics of the policy in question, but in a typical scenario employers pay the insurance premium based on an agreed level of cover. Because this is generally considered a ‘benefit in kind’, employees will pay tax on the premium at their usual rate through payroll. When making an eligible claim and accessing treatment, employees then often pay an agreed excess fee, with the insurer covering the remainder of the cost. However, it is important to note that the level of cover provided and the way premiums are funded does not follow a prescriptive model, with potential for employees to contribute to the premium. This underlines the flexibility and variability inherent in private healthcare provision.
For employers, the complexity of the private medical insurance landscape underlines the need to support and educate employees on the nature of this valuable benefit, including the detail of the specific options available to them.
It can be helpful to integrate this information into onboarding processes to ensure new recruits are given clarity from the outset on the healthcare benefits available. Discussion of PMI can also be incorporated into regular benefits reviews, allowing staff to raise any questions or address any points of concern.
Employee benefits partners can also be called upon to provide an expert external perspective, whether covering the fundamental basics or the nuanced complexities of PMI in practice. After all, even the best-designed benefit schemes can fall flat if employees don’t understand them.
By demystifying PMI and busting any myths that might persist in the minds of staff, you’re not only helping your workforce make informed choices, you’re also reinforcing your organisation’s commitment to their health and wellbeing.
More than that, it’s an opportunity for companies to improve engagement and strengthen their employee proposition. And at a time when private healthcare is deemed essential by some, that’s a message worth communicating clearly.
The information contained within this communication does not constitute financial advice and is provided for general information purposes only. No warranty, whether express or implied is given in relation to such information. Vintage Health or any of its associated representatives shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.
