Case study: how a leading commercial bank benefits from using a healthcare trust
Tailored and flexible scheme design
Using a healthcare trust has enabled the bank to tailor benefits, limits and exclusions to suit their business needs, easily altering them over time as those needs have changed. Being able to offer more versatile care approaches via the healthcare trust has been a distinct benefit for members too.
Smooth funding and maximised value for money
The claims fund needed within the trust is agreed each year between the trustee, the bank and the trust’s auditor, from which monthly contribution levels are set. The ability to drip feed contributions has provided a smoother funding solution for the business.
The claims fund needed varies with actual and anticipated future experience, and unused funds can benefit from investment returns. For the bank, the claim fund has reduced over the years due to a fall in the number of members and lower than anticipated claims, which directly led to lower contributions. In a period of no claims, the bank has also benefited from a contribution holiday.
Originally, stop loss insurance was used to mitigate the risk of a large single claim or combined level of claims. Shifting membership together with greater understanding and the development of the trust’s claims fund over time has enabled the bank to feel confident in self-insuring.
Great service for employees and employer
Claims are managed directly by the trust’s underlying healthcare provider so, whether they need a hip replacement, surgery or cancer care, employees are assured they are dealing with medically trained staff.
Administration is managed seamlessly between the healthcare provider and the trustee. Using a professional trustee means both a member and the bank are confident that:
- claims are paid promptly in line with scheme rules
- disputed claims are managed with consistency and independence.
Being at arm’s length from medical claims enables the bank’s HR team to make cleaner decisions on other employee issues.
Effective governance
Appointing a professional sole trustee to manage the trust provides the bank with additional certainty:
- all disclosure and reporting requirements are met – such as accounts and tax returns
- financial transactions are managed by an independent professional – including contribution collection and payment of claims and fees
- risks are identified, mitigated, monitored and managed.
This article is provided by Punter Southall Governance Services.
In partnership with Vidett
Leading the way in professional trusteeship & governance
