While not a legal requirement, health benefits are in high demand, but are yours really doing what you want them to – and what your employees want them to?
Here’s 6 reasons why it might be time to press the reset button…
1. Re-evaluating your requirements
Stepping back from your benefits to look at them afresh is a great opportunity to evaluate what you’ve got in place, and see if it’s meeting the needs of both the business and your employees.
There was an explosion of workplace health initiatives in response to the pandemic, many of which may no longer be fit for purpose. Mercer Marsh Benefits 2023 report 1 recommends decluttering a crowded house, and re-focussing in line with business strategy.
A benefits audit should look at take-up and usage figures, ask employees for feedback on their experiences, and then ask what they actually WANT in terms of health support.
It should also consider what value the business is getting from health initiatives, in terms of engagement, productivity, competitive advantage/parity, and/or sickness absence impact.
2. Stability and sustainability
It’s important to consider not just the current costs of your health benefits but future costs, too, and whether your programmes are sustainable long term.
Some employers are facing premium rises of up to 50% 2 with renewal hikes every year and usage penalties pushing benefits budgets beyond their limits.
It’s precisely why at Equipsme we currently community rate our plans, have a single fixed price per plan level for all employees aged 16-69, and our most popular plans have seen increases equivalent to only around 5% on average year-on-year since we launched in 2018
3. Covering more of the workforce
Traditionally, Private Medical Insurance has been reserved for top executives in large companies. And junior employees might have access to things like cash plans or EAP services. They can only go so far, may provide limited benefits on select services like dental and optical appointments, and can expect workers to pay up front and be out-of-pocket.
Pressing the reset button gives organisations an opportunity to re-distribute health benefits more equitably across the business.
At Equipsme we’re seeing many organisations choosing to cover their entire workforce – often for the first time. In fact, we estimate around 90% of Equipsme customers are buying workforce wide health insurance for the first time.
4. Tailoring services
Covering your whole workforce doesn’t mean one size has to fit all.
People have very different health needs and requirements at different stages of their life and career. But 4 in 10 3 employers don’t target their health and wellbeing benefits according to their employee demographics, despite 76% reporting they have received requests for specific, targeted support.
At Equipsme, we find that some businesses buy mixed levels of cover, with full diagnosis and treatment for senior level employees, or attached to length of service, with diagnosis-only or primary care services for junior team members.
We’re unique in the market because we allow employees to choose to pay in to buy more cover than their employer has bought or add family members, depending on their health priorities. They can do so out of their own pocket, but without the price tag of an individual policy - and without paying P11D tax. More and more clients are using Equipsme to open a gateway to tailored, cost-effective private health insurance for ordinary workers.
5. Re-focussing towards the health services that more employees need
Health benefits shouldn’t be saved for a rainy-day – they should be of practical value to your business and your employees in the here and now.
Some of the biggest issues facing businesses are sickness absences 4 due to minor illnesses and MSK issues (the first and third most common reasons for people being off work) – but that people struggling to access NHS services like GP appointments (which around 4 out of 10 5 find hard to make) and physiotherapy sessions (with 350,252 6 people on the waiting list in summer 2024).
Re-focussing benefits means businesses can support people to stay in work, and support them to access early interventions that can prevent more serious issues and illnesses developing – and even protect against more serious claims.
At Equipsme, our entry level package is just £9 a month, and includes a 24/7 GP service from Health Hero (used by 30% of members last year) who can provide private prescriptions (paid for directly by employees) and specialist referrals. Also included is a 24/7 health advice line from AXA Health, and physiotherapy sessions via AXA Health.
There are conditions and exclusions – like pre-existing conditions from the last three years and we can provide diagnosis for cancer, but cancer treatment is provided by the NHS. That helps keep the costs down and pricing stability right now is a key requirement for businesses and employees.
6. Mixing and matching covers
Companies don’t need to press the reset button all the way back down to zero before rethinking and rebuilding benefits. You can mix and match current benefits with new ones.
One of the big problems with switching everyone over onto new services is that some people – for instance those on traditional PMI plans – might face a drop in cover, issues mid claim or go back to the start on things like pre-existing conditions.
The good news is you can often keep some people on legacy policies while phasing them out and introducing different cover at different levels across your workforce. Don’t let historical benefits stop you from modernising your health and wellbeing provision, and future-proofing your reward packages.
Sources
1 www.mercer.com
2 healthcareandprotection.com
3 www.covermagazine.co.uk
4 www.ons.gov.uk
5 www.healthwatch.co.uk
6 www.england.nhs.uk
