8 reasons to consider a corporate healthcare trust
Healthcare trusts are a recognised alternative to traditional private medical insurance and are a means by which employers can self-fund their corporate healthcare provision.
Funds are held in trust and managed by trustees with ‘claims’ managed by a company specialising in healthcare benefit administration. Often imagined as being complicated because of the words ‘trust’ and ‘trustees’, they actually need be no more difficult to set up than a traditional PMI scheme.
Healthcare trusts offer employers many advantages over traditional private medical insurance. Here are our top 8:
1) Greater flexibility
The benefits can be tailored to suit the employer’s requirements as it is the employer’s own scheme and different levels of cover can be accommodated for different groups of employees if required. Employers are not restricted to an off-the-shelf product or constrained by terms imposed by an insurer.
2) Employer funds only the benefits used
The employer retains funds when claims are lower than anticipated rather than an insurer taking extra profit. The employer can elect to be protected from claims exceeding their budget through the use of stop loss insurance so any risk can be mitigated.
3) Superior service with nurse case managers
Some healthcare trust administrators are staffed by nurse case managers rather than insurance claims administrators. Their medical expertise and empathy with the ‘claimant’ not only provides a much more reassuring experience for employees which reflects well upon the employer, but also ensures that the correct care pathway is followed and medical costs are correctly managed.
4) Fully integrated healthcare provision
In addition to private medical benefits, it is also possible to incorporate other health related benefits such as cash plan and dental benefits within the healthcare trust and if required, some providers with nurse case managers can also act as a central hub co-ordinating provision with other overlapping services such as an EAP or income protection, directing employees to the most appropriate benefit.
This can ensure fully integrated healthcare provision and the most effective use of an employer’s overall healthcare budget.
5) Future proofing of healthcare spend
The flexibility and bespoke nature of a healthcare trust allows for better long term planning and future proofing of healthcare spend.
6) Lower costs
Nurse case management can ensure that the most appropriate care pathway is taken and that there are no unnecessary or exaggerated treatment costs. If required by the employer, it is also possible to navigate cases to NHS Centres of Excellence for certain treatments where appropriate, leading to further cost savings while still supporting the employee throughout their treatment.
7) Lower P11d rates
The P11d rates for employees also tend to be lower where benefits are provided through a healthcare trust.
8) Tax Efficient
With Insurance Premium Tax (IPT) increasing to 12% in June 2017, Healthcare Trusts have become even more attractive as they do not attract IPT in the same way as private medical insurance and can offer significant savings.
Richard Saunders is sales director at Healix Health Services.
This article was provided by Healix Health Services.
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