5 benefits of adopting a healthcare trust for employee benefits
A healthcare trust model is an alternative way of providing your employees with access to healthcare and wellbeing support. But there is some confusion about the advantages of such an approach.
What a healthcare trust offers:
1. Cost saving for employers
A healthcare trust offers a significant saving for employers. Unlike private medical insurance, which is often associated with high premiums, a healthcare trust allows employers to set aside a predetermined amount of funds for employee healthcare. This fixed budgeting approach helps organisations stay in control of costs more effectively, as they are not subjected to unpredictable premium increases.
2. Increase control and flexibility
Healthcare trusts empower employers with greater control and flexibility over the design and implementation of healthcare benefits. Employers can tailor healthcare offerings to meet the specific needs of their workforce. This ability to customise allows for a more targeted and effective use of resources, ensuring employees receive benefits they need.
3. Long-term stability
Healthcare trusts promote long-term sustainability by providing employers with a stable and predictable financial model. By setting aside funds and managing healthcare expenses within the trust, organisations can mitigate the impact of external factors such as inflation, economic fluctuations, or changes in insurance market dynamics.
4. Access to tailored healthcare
A healthcare trust model allows organisations to tailor healthcare access to the particular needs of their workforce. This could include specialised wellbeing programmes, preventive care initiatives, or partnerships with specific healthcare providers. By offering targeted services alongside non-standard benefits, employees can access the care they need more efficiently, contributing to overall health and wellbeing.
5. Risk mitigation
Healthcare trusts provide a degree of risk mitigation for employers. Unlike traditional insurance plans where the risk is transferred to the insurer, a healthcare trust allows organisations to retain control over their healthcare funds. This control can help mitigate risks associated with unexpected healthcare costs and allows for a more strategic approach to managing healthcare expenses.
Myths around healthcare trusts:
1. Complex administration process
A common myth surrounding healthcare trusts is the administration complexities around managing a healthcare trust. This myth is generally a block for companies investigating this healthcare alternative as few have the internal resources available to manage administration.
And while administering a healthcare trust requires specialised knowledge, implementing a healthcare trust with a reputable trust administrator includes access to industry experts who are readily available to oversee day-to-day operation and support employers in setting up their trust.
2. Loss of health insurance cover
As employee benefits remain in place during the transition to a healthcare trust model, it’s important to emphasise employees are still covered by comprehensive private healthcare to ease any uncertainty.
Implementing a healthcare trust for employee benefits presents a compelling alternative to traditional private medical insurance. The potential cost savings, increased control and tailored healthcare access offer advantages for both employers and employees.
By looking at alternative funding models such as a healthcare trust, employers are able to make informed decisions that align with their organisations goals and prioritise the health and wellbeing of their workforce. By weighing the pros and cons, employers can make informed decisions that align with their organisations goals and prioritise the health and wellbeing of their workforce.
In partnership with Healix Health
Healix Health provides flexible, bespoke healthcare solutions as an alternative to traditional private medical cover.
