The healthcare sector has undergone changes in recent years, presenting new challenges for employers managing private medical insurance (PMI) plans.
Our employee benefits specialists, Lee Fitzgerald and Martin Potts, walk you through how your business can manage its private medical insurance (PMI) plans to adapt to key social issues, including insufficient funding, staff shortages, post-COVID backlogs, an ageing population, and evolving healthcare needs.
The situation today
The strain on the National Health Service (NHS) in the United Kingdom is evident, with over 7 million people on waiting lists for consultant-led elective care—a figure more than double that of 2015¹. Ongoing industrial actions further compound the challenges, impacting healthcare services nationwide. In light of these difficulties, employees are increasingly turning to employer-sponsored healthcare for timely and effective treatment.
Private insurers are meeting the growing demand for healthcare services. However, the cost implications for businesses providing such coverage are substantial, with medical premiums witnessing significant increases, rising up to +20% in 2023². If this trend persists, businesses may be forced to question the sustainability of such financial commitments.
A key component of a robust benefits package
In the world of employee benefits, private medical insurance (PMI) can play a crucial role in providing comprehensive support for your people and, as an employer, helping ensure the wellbeing of your employees through an effective healthcare plan can be a key component of a robust benefits package. However, the evolving healthcare landscape, coupled with economic challenges and the strain on the National Health Service, introduces unique challenges in managing medical insurance plans.
Our top tips to manage your medical insurance plan:
In light of these challenges, employers must carefully evaluate and manage their private medical insurance plans. Some key considerations include:
- Preventing is better than curing: Implement strategies to educate employees about health risks, with a focus on lifestyle factors such as nutrition, exercise, and mental health.
- Promote mental health support: Highlight employee assistance programs and ensure easy access to mental health support services.
- Claims management: If claims management information (MI) is available, conduct regular reviews to understand current claims performance and identify key health risks within the workforce.
- Benchmarking: Regularly benchmark your medical insurance plan to ensure that the design and pricing remain competitive and suitable for the current climate.
- Collaborate with advisors: Work closely with advisors to identify and address challenges within the plan, adapting it to changing circumstances.
- Time management: Acknowledge the limited time available and promptly identify what is working and what needs improvement. This allows for timely plan benchmarking ahead of renewal, providing sufficient time to communicate changes to employees.
In the face of a dynamic healthcare landscape, employers must proactively manage their private medical insurance (PMI) plans to meet the evolving needs of their workforce. By considering these key points, businesses are able to navigate the challenges, helping ensure the sustainability of their healthcare offerings, and assisting the wellbeing of their employees.
Get in touch
If your business is on this journey and seeking further advice, get in touch to find out how NFP can help you optimise your private medical insurance (PMI) plans with specialist guidance and support.
Author
Lee Fitzgerald
Employee Benefits Consultant
Transforming your employee benefits strategy
We have the expertise and insights to help you ensure your benefits strategy is aligned to your business goals; helping you recruit, reward and retain the best talent. In turn, you gain more time to focus on your biggest asset – your people – whilst delivering an employee benefits strategy that meets your ever-changing business needs.