Are health cash plans a good alternative to PMI?

As an alternative and complementary product to private medical insurance (PMI), there is no doubt that cash plans are fast growing in popularity and rollout.

Cash plans are seen as a tool to support all employees, but data shows a growing trend in blue-collar companies providing these plans on a company-paid basis.

Diagnostic scans, helping people to bypass NHS waitlists and musculoskeletal (MSK) treatments including physiotherapy, can help to reduce employee absenteeism.

Digital extras such as online GP services, mental health support and wellbeing content also add a preventive approach to employee wellness at all plan levels.

In terms of outlay, whereas PMI will typically cost a company in the region of £600-£700 per employee for a year's cover, a cash plan can cost a fraction of that - making it a far more affordable option for a greater number of workers, and companies.

Moreover, in the busy modern world of hybrid and remote working, the products and benefits available within a cash plan are accessed and purchased almost exclusively online, also making it a very efficient time-saver.

Evolving benefits of cash plans

Until recently, the two primary reasons for employees to sign up to a cash plan were dentists and opticians.

This makes sense because every year we are all guaranteed to pay for at least one of those services, so getting money back on them is cost-effective.

Now, we are seeing an interesting evolution in the cash plan offering where diagnostic tests such as MRIs and X-rays are also being covered and are becoming a key driver for people taking them up.

Accessing diagnostics via a cash plan allows workers to avoid some of the worst NHS waiting times.

By skipping the queue to diagnosis, a worker can access the treatment they need more quickly, either back through the NHS or privately if they have that option.

The same saving in time is equally crucial for businesses in terms of operational flow and productivity.

Most cash plans cover children free of charge and offer employees the option to upgrade their level of cover via salary sacrifice deductions, add partners and additional complimentary insurance options such as health assessments, cancer cover and sick pay benefits payable via direct debit or payroll deduction.

Cash plans at a glance: saving time and money

Eye tests and glasses - booking, appointments and payments are made quick, easy and affordable, as is the purchase of glasses
Dentistry - in a world where few people can now access an NHS dentist, a cash plan makes private dentistry more accessible and affordable
Diagnostic tests - scans and x-rays can be accessed far quicker than through the NHS
Online GP - rather than wait days or weeks to see a doctor, people can speak with a GP by telephone or video call where and when it's convenient to them
Mole checks – increasingly expensive, mole checks and removals can be covered through cash plans, depending on the level
Physio – a cash plan can get you on a physio’s couch quicker than the NHS, or accessing treatment in addition to what the NHS can provide, meaning a faster return to work
Mental health - cash plan providers are also looking holistically at the workplace to better understand why more people have struggled with mental health since the pandemic, so that they can also address those issues through EAPs and support
Discounted gym membership - a great way to stay physically and mentally healthy and also available through a cash plan

Until recently, one downside to cash plans was the number of different providers and online portals.

At Personal Group all the benefits of its employer paid cash plan are under one banner, integrated within its platform and HAPI app where employees can also access all their other employee benefits at the same time.

Cash plans offer an entry level pathway into health and wellbeing products for staff and employers, for whom the return on investment is provable and tangible.

If as a company, you cannot afford a PMI but would like to help your employees access care and diagnostics quicker - and bypass certain NHS waiting lists - a cash plan is definitely worth looking into.