Alternatives to PMI: could employers be missing a trick?
Private medical insurance (PMI) is a traditional employee benefit which has long been considered a mainstay for health and wellbeing but advances in health benefits, mean employers who don’t consider alternatives may be missing a trick.
PMI is still a coveted health benefit, and many employees welcome the ability to add partners and dependents to their policy, giving them peace of mind that they’ll have an alternative to the NHS if needed.
Still, it doesn’t meet all business or employee needs for a few reasons:
- Cost: PMI is expensive, and premiums continue to rise, which can be a significant burden for businesses, especially smaller ones.
- One-size-fits-all approach: Traditional PMI often doesn't cater to the diverse needs of a workforce. Some employees may require more extensive coverage than others.
- Limited flexibility: Many PMI plans have strict rules and limitations, which can frustrate employees and employers.
Alternatives to PMI
The cost of doing business is increasing, and many employers will feel the effects of the National Minimum Wage and NIC increases due in 2025.
Employee benefits remain essential, and there are many perks that come with having healthy employees.
When the cost, lack of inclusivity and flexibility associated with PMI make it an unviable option, it’s time to explore the alternatives.
Digital health platforms
Digital health platforms are often included in a PMI offering, but they are also available independently.
In its blog, Digital healthcare… enhancing employee wellness at every age, Pluxee UK explores the positives of this cost-effective employee benefit, which include:
- Access to GP appointments within 24 hours all year round.
- Prescription delivery service.
- Online content and self-care tools.
Digital healthcare isn’t medical cover that takes employees down the paid, private route, but it does speed up access to medical support.
Making healthcare more accessible reduces the time employees take off work for appointments at their local GP surgery.
Employee assistance programmes (EAPs)
EAPs provide confidential support and counselling services to employees dealing with personal or work-related issues.
Beyond counselling, EAPs provide employees with access to information specialists, online CBT, and -in-the-moment crisis support.
Other PMI alternatives include health cash plans, self-funded healthcare, group income protection and critical illness cover.
Wellness programmes
Investing in employee wellness initiatives, such as health screenings, gym memberships, and healthy eating programmes, can improve employee health and reduce healthcare costs in the long term.
The importance of culture
The biggest ‘trick’ employers miss isn’t about what health and wellbeing benefits they should offer.
Employers put these solutions in place to help keep their employees healthy.
Healthy employees are happier, more engaged, loyal, motivated and productive.
The issue is that offering employee benefits without establishing the right culture can only affect so much.
Benefits are less effective when used as a bandage to cover a poor workplace culture and experience.
Consider this: You provide your employees with EAP to support their mental health while neglecting to tackle excess stress in the workplace.
It’s not always possible to remove all sources of stress, and a little stress can be positive.
Still, if you don't tackle a high-stress culture, you're limiting the positive impact of the health benefits you offer. It also screams inauthenticity and wellbeing washing, which can cause disengagement.
Employee wellbeing must be embedded within the culture and championed from the top down.
Finding the balance
Any successful health and wellbeing initiative must balance employee needs with business budget.
Consider the diverse age ranges, abilities, and family situations to find a flexible and inclusive solution to tick the boxes for all employees while delivering a return on investment for your business.
In partnership with Pluxee UK
Pluxee UK, is a leading employee benefits and engagement partner that opens up a world of opportunities to help people enjoy more of what really matters in their lives.
