1. They already have their own policy
The crisis in the NHS has led to increased demand for private health insurance in recent years, with some estimates putting the figure as high as 18%1 of Brits who now have access to private health insurance, with 1 in 82 paying for it themselves.
2. They already have private medical insurance through a partner
Equipsme’s own research3 indicates that around 12% of people are already covered through a partner, for instance by a group scheme their husband or wife already belongs to.
3. They’re worried about cost
Some people are worried about how much Private Medical Insurance is going to cost them as individuals – even if it’s bought for them as a company plan.
It could be they would rather put an annual benefits allowance into other things, like a company car, extra annual leave, or a pension. Others caught in the cost-of-living crisis are worried about cash flow, and fear a health benefit like a cash-plan might lead to up-front payments they can’t afford, and aren’t 100% sure they’ll be able to claim back. Even if reimbursements can be both guaranteed and processed in a matter of hours, many people won’t have enough money in the bank to afford it. As many as one-in-four UK adults4 are either in financial difficulty or have little to no savings, and being out of pocket, even for a day or two, is just not feasible for everyone.
For some, it’s a tax issue. PMI attracts P11D benefit-in-kind tax. We estimate that employees on a 20% tax band will pay about £7.80 per month in tax for their plan if their employer buys them Level 2 cover at £39 per month. On the flipside though, employees are receiving some great health benefits with only a 20% tax cost to them, compared to the cost of buying individual cover themselves which can run into hundreds of pounds a year.
P11D tax on health benefits is something here at Equipsme we’ve been campaigning against5, and it’s why our GP only service can be a great option. It allows businesses to open the door to PMI, but at low cost, and a lower P11D hit for employees. Individuals can then choose to pay in themselves for any extra cover, like upgrades or adding a partner or children, which DOESN’T have a P11D cost.
4. They love the NHS
Some people are morally opposed to private health care, and the creation of a two tier health system where those who can afford to pay get access to a quicker service than those who can’t. But as the NHS continues to struggle, attitudes to private healthcare are changing.
According to research from the Independent Healthcare Providers Network6, most people feel positive about private healthcare, with just 11% having a negative attitude. Younger people are more likely than older people to consider it a viable option, and 73% of those who’ve used private healthcare feel positive about the sector.
At Equipsme, we believe the NHS and private health care should and can work together. It is an absolute priority to preserve public healthcare for vulnerable people and serious conditions, but private options are a way for individuals and businesses to also start investing in health, and taking the pressure off key NHS services.
5. They don’t understand what’s on offer
One of the biggest barriers we’ve found to take-up is really understanding what’s on offer, what the practical, everyday benefits are, and why Equipsme is different to something like a cash plan.
It’s why we spend so much time working with businesses to introduce Equipsme to staff and ensure a smooth rollout. That includes tech solutions to integrate Equipsme with existing benefit platforms, white-labelled websites/apps to ensure a seamless user journey, on-site or webinar training and intro sessions, bespoke email and internal communications campaigns, and good old-fashioned posters and leaflets for kitchens, communal areas, and the back of the toilet door.
If you’d like to discuss how we can help your business introduce Equipsme successfully, drop us a line at [email protected].
Sources:
- www.actuarialpost.co.uk/article/almost-7-million-uk-adults-hold-private-medical-insurance-
- www.theguardian.com/politics/2023/apr/17/one-in-eight-britons-pay-for-private-health-services-survey-shows
- www.equipsme.com/blog/changing-attitudes-to-healthcare-white-paper/
- www.fca.org.uk/data/financial-lives-2022-early-survey-insights-vulnerability-financial-resilience#lf-chapter-id-low-financial-resilience
- healthcareandprotection.com/lobbying-three-pms-on-p11ds-seeking-investment-for-expansion-rejecting-protection-provider-tie-ins-and-creating-a-member-marketplace-equipsme-founder-matthew-reed-interview/
- www.ihpn.org.uk/what-people-think-about-private-healthcare/
All our information is desk-based research from credible sources only, including the NHS and medical/disease charities
Date created: July 2024
