×
First-time login tip: If you're a REBA Member, you'll need to reset your password the first time you login.
15 Oct 2018
by Kevin O’Neill

Three tips to control your PMI costs

Many employers want to do the right thing by their employees by providing benefits such as Group Private Medical Insurance (PMI), but increasingly, cost is the key factor when considering the ongoing viability of cover. 

22E4-1539549280_threetipsPMIMAIN.jpg

Many employers want to do the right thing by their employees by providing benefits such as Group Private Medical Insurance (PMI), but increasingly, cost is the key factor when considering the ongoing viability of cover. 

While PMI providers use their buying power to secure cost savings through their hospital networks and the cost of older medicines may become cheaper, the development of new medicines, treatments and procedures often cost significantly more. All of these costs have to be met somewhere and ultimately, where a PMI scheme has a high claims incidence, it’s the end user the client and members who bear the brunt of increased costs.  

However, not all is doom and gloom. Employers are able to better control increases in a number of ways. The following are just a few examples:

1. Tinker with the plan 

Introducing or reducing limits under a plan, while not always welcome, can result in cost savings to a greater or lesser degree and ensure a benefit can continue to be provided. Examples could include: 

  • increasing an existing policy excess or introducing one this tends to deter small claims and ensures that members only claim when they really need to 
  • restricting outpatient benefit levels   
  • restricting cancer treatment cover, or not providing it at all – instead sign-posting people to the NHS  
  • introducing a six-week option where private treatment is only available if it can’t be obtained on the NHS within this period
  • including dependants only at the employees’ own expense. 

2. Think about other options 

Generally, an employer who offers a PMI scheme will offer other benefits that could be better utilised to reduce claims spend. For instance, many employers offer Group Income Protection cover, where a HR department could: 

  • direct individuals suffering from stress or mild mental health issues to an embedded Employee Assistance Plan, where telephone-based or face-to-face counselling is often available 
  •  instigate an Early Intervention referral (where there has been a period of absence), which may result in medical treatment (or adjustments to the workplace) to allow an individual to return to work. The insurer here sees the investment in treatment up front as beneficial in stopping an individual becoming a claimant.     

3. Think holistically, think wellbeing 

PMI shouldn’t be considered in isolation. We believe that PMI is just one facet to help ensure that employees can be happy, healthy, efficient and productive in their role. Our approach to wellbeing is based on the ancient Greek philosophy of Eudaimonia; a person’s state of happiness and human flourishing which is supported by our modern six pillars ideology. These cover elements around ‘my job’, ‘financial security’, ‘health’, ‘protection’, ‘support’ and ‘work/life balance’.  

By addressing each of these six pillars from the perspective of the employee, it will have a positive impact on both employee and employer through increased productivity, reduced absence, fewer accidents, better employee engagement and retention, and overall lower cost of benefit provision. 

This approach will improve the wellbeing of employees but also increase their performance to the benefit of both employer and employee, as well as creating a tangible return on investment and, in particular, help control PMI costs. 

Regardless, we recommend that employers seek appropriate advice and support from a healthcare benefit and wellbeing specialist. 

The author is Kevin O’Neill, head of workplace health at Barnett Waddingham.  

This article was provided by Barnett Waddingham.

In partnership with Barnett Waddingham

Everything we stand for at Barnett Waddingham is embedded in our promise – to do the right thing. We’ve applied this meaningful principle across all aspects of our business with continued success.

Contact us today

×

Webinar: Rethinking benefits to attract, retain and engage as age demographics shift

Wed 20 March 2024 | 10.00 - 11.00

How to plan ahead for the emerging needs of mid- and later career workers, what the typical life stage challenges are likely to be, as well as which benefits and reward strategies can be used to support new ways of working.

Sign up today