Can cash plans ease the pain of illness and absenteeism?

Why are health cash plans gaining in popularity, and could they be a good fit for your organisation?

The government’s recent whitepaper Get Britain Working outlined some frightening statistics regarding employee illness and absenteeism.

It challenged business to do more for the 2.8 million people locked out of work due to long-term sicknesses.

A competitive salary still lies at the heart of any employment offer but figures show, however, that helping employees feel content, safe and supported at work is increasingly important, for both the worker and the organisation.

Absenteeism costs UK businesses on average £522 per employee per year, according to CIPD research in 2023, underlining the value of investing in preventative measures.

For many of that 2.8 million either permanently ‘locked out’ through long-term disability or working with chronic pain, work is a scary place, especially if they have been out of work for some time.

But companies are now in a better position than ever to entice workers back and look after them by offering greater flexibility and support.

Reducing absenteeism

Cash plans can be a major part of the solution.

Until recently, the two primary drivers of cash plan take-up were dentistry and eye tests, allowing workers to get money back on these regular costs, but things are changing.

Cash plan providers are now taking a more holistic approach to the workplace, aiming to better understand the challenges employees have faced since the pandemic.

They are focusing on how to address these challenges through preventative measures, with bolt on wellness apps, health assessments and other support structures, helping to improve overall employee wellbeing and productivity.

In terms of physical support and intervention, we are also seeing the cash plan evolve into a more sophisticated offering with access to diagnostic scans such as MRIs and X-rays and MSK treatments including physiotherapy for chronic conditions.

This allows workers to avoid some of the worst NHS waiting times and ultimately get access to the treatment the need quicker.

Digital extras such as online GP services add further flexibility, enabling workers to book appointments at a time that suits, and speak with a doctor without needing to leave the office, again saving time and reducing absenteeism.

Why are cash plans on the rise?

With rising healthcare costs and increasing demand for accessible wellbeing support, health cash plans are becoming a go-to employee benefit.

They offer a cost-effective way for organisations to help employees manage everyday healthcare expenses - without the complexity or price tag of private medical insurance.

The main benefits that make cash plans appealing include:

Affordability and accessibility: Unlike PMI, which covers major medical treatments, cash plans focus on everyday health costs like dental check-ups, eye tests, physiotherapy, and even mental health support - making healthcare more accessible to more employees.
Appeal to a multi-generational workforce: Employees at different life stages benefit in different ways. Younger staff might value optical cover for screen-heavy roles, while older employees may appreciate physiotherapy or chiropody support.
Boosting financial wellbeing: With the cost of living rising, employees value benefits that put money back in their pockets. Health cash plans allow them to claim cashback on essential health costs, reducing financial strain.
Supporting workplace wellbeing and retention: Employees who feel supported in their health and wellbeing are more likely to stay. Organisations with strong wellbeing strategies see up to 23% lower turnover (CIPD).

Digital integration

The digitisation of cash plans is transforming the way employees’ access and manage their benefits.

With advancements in technology, most providers now offer user-friendly mobile apps and online platforms that allow employees to easily submit claims, track reimbursements, and access their benefits in real-time.

This digital shift not only streamlines the process for employees but also increases accessibility, making it simpler for employees to utilise their cash plans whenever and wherever they need them.

Additionally, digital cash plans can be integrated with into employee benefit platforms, creating a more seamless and efficient experience for both employees and employers.

For both workers and employers, there is no question that cash plans offer an entry level pathway into health and wellbeing products, with a strong return on investment in time, reduced absenteeism, worker resilience and appreciation.

Cash plans at-a-glance

Eye tests and glasses - booking, appointments and payments are easy and affordable
Dentistry - makes private dentistry more accessible and affordable
Diagnostic tests - scans and x-rays can be accessed far quicker than through the NHS
Online GP - workers can speak with a GP by phone or video call at their convenience
Mole checks – increasingly expensive, can be covered through cash plans
Physiotherapy – quicker access to the physio couch means a faster return to work
Mental health – a more holistic approach to understanding how best to support people
Discounted gym membership - also available through a cash plan