A quick summary:
Historically, Private Medical Insurance (PMI) was regarded as a vital benefit for businesses seeking to attract and retain top talent. Providing private health coverage showcased a company’s commitment to employee wellbeing and offered a competitive edge in the job market. Over time, it became a standard feature of benefits packages, particularly for employers aiming to stand out.
Today, employers are asking the question; ‘Does PMI actively support employee wellbeing?’. With the cost of healthcare and PMI hiking prices, it’s an employee benefit that is becoming increasingly expensive for businesses, soaking up huge amounts of their wellbeing budgets.
Traditionally, PMI costs ranged from £200 to £1,500 per employee annually, depending on level of cover, age and location.
While these costs were once manageable - and forecastable - premiums are now climbing by over 20% each year on average, with some businesses facing hikes of up to 70%. For most, the uncertainty is becoming untenable.
But why are private medical insurance premiums rising so quickly?
Market pressures, a stretched NHS, and the ongoing ripple effects of the pandemic are all to blame for the rising costs of PMI. These challenges have created a perfect storm, forcing PMI providers to drive up prices.
Essentially, employees are using private medical care for things they ‘shouldn’t’ need to, like GP appointments; in part due to astronomical wait times for NHS appointments, and in part due to an enhanced desire to remain healthy, sparked during the Covid pandemic. These minor claims come in huge volumes, explaining the price hikes each year.
For companies already offering PMI, cutting the benefit isn’t a simple choice - especially when it’s been a trusted resource for employees over time. But the more people come to rely on it, the faster premiums rise, leaving businesses stuck between axing essential health support and managing spiraling costs.
Is Private Medical Insurance the right employee benefit for your business?
It’s in employers’ best interest to keep their people healthy. Reducing absences and keeping people productive is obviously good for business. But PMI is not the only way to support workforce health. Enter: preventative healthcare.
Giving your teams the tools to stay healthy and make good choices is a great way to keep your teams from needing PMI in the first place. Providing essential private health care like virtual GPs, physiotherapy, dental and optical care outside of your PMI provider is even better. A whopping 60% of PMI claims are for ‘every day care’ like physiotherapy and GP appointments, and that's what's having the biggest impact on your premiums.
Take it one step further with proactive wellbeing support
Instead of simply covering health issues after they arise, proactive wellbeing support is all about preventing problems before they happen- or catching them early. Whether you’re already offering PMI and want to reduce claims to minimise premium hikes, or you’re looking for a more cost-effective alternative, investing in proactive wellbeing is a smart move.
Proactive wellbeing can include things like:
- At-home cancer screening kits
- Physiotherapy
- Mental health support
- Flu jabs
- Dental and optical care
- Mindfulness sessions
- Nutrition support
- Vitamins and supplements
- Wellbeing activities such as pottery, gardening and more
Here’s the thing: a lot of the most common PMI claims could be covered by a platform like Heka for a lot less money. In fact, for most businesses with existing PMI in place, it’s still cheaper to invest in Heka’s fixed cost health options alongside your PMI than to deal with the price hikes of frequent usage.
Heka benefits are all health-first. From fitness to mindfulness, nutrition to sleep, our platform keeps your people healthy and performing at their best to drive your success. By offering services that lower PMI claims, Heka enables employers to manage rising insurance expenses more effectively. With a single platform, you can reduce stress-related absences, boost productivity across the company, align with HR goals, and provide meaningful support to those in need.
So, what’s the impact of a wellbeing benefit like Heka?
Boasting 97% engagement, Heka makes a real difference for your entire team. When employees feel their best, they perform their best- and that positively impacts your bottom line. Our health-led benefits encompass areas often overlooked by PMI, including financial advice, nutritional support, legal assistance, carer support, debt management, and more - each of which can significantly enhance both mental and physical wellbeing.
How can Heka help reduce PMI claims?
Use Heka in tandem with your existing PMI and transform your wellbeing offering. Heka empowers employees to improve their wellbeing on their own terms. By providing a monthly wellbeing allowance, you ensure that everyone is supported while taking a proactive approach to health and wellness. Heka’s flexibility future-proofs your benefits, offering something for every individual. Additionally, Heka helps businesses save money by enabling employees to access private GPs and other services through a fixed cost platform, rather than relying on PMI, which raises premiums. With services covering fitness, nutrition, and mental health, Heka promotes healthier lifestyles and reduces reliance on PMI.
Can I still keep my Cash Plan?
Heka provides flexible health cash plans that employees can use to cover healthcare services, promoting overall well-being in a cost-efficient way. We make it easy for employees to stay on top of their health with a variety of health cash plans, covering things like specialist consultations, dental care, and optical needs. With different levels of cover to choose from, it’s a great way to prioritise preventative care at work and manage the growing costs of PMI. And if you’re happy with your current health cash plan provider we can simply integrate all the links and information your employees need inside the Heka platform, keeping all of your benefits in one place.
PMI can have limited appeal for younger employees
Private medical care is often seen as an attractive benefit for older teams because it provides peace of mind regarding health and wellness, which becomes increasingly important as people age. Older team members are likely to have more health concerns, chronic conditions, or a greater need for specialised care, making access to private healthcare valuable Younger workforces simply don’t see the same immediate value in PMI. Their focus may lean more toward other benefits like career development opportunities, flexible work arrangements, or wellness programs that better align with their current stage of life.
The future of employee wellbeing is here
While PMI may have its place, if you’re looking for a benefits solution that meets the needs of today’s workforce, Heka is the answer. We’re not here to just fix problems. We’re here to empower your employees to take charge of their wellbeing every day.
With Heka, you can avoid rising premiums and underused benefits. Our platform provides employees with personalised, health-led benefits that reduce absenteeism and boost productivity.
It’s time to rethink employee wellbeing. Let Heka guide you.
