Best PMI for SMEs UK 2025
As an FCA-authorised expert with over 800,000 policies arranged, WeCovr understands the UK private medical insurance market inside out. This guide explores the best, most affordable private health cover for SMEs in 2025, helping you protect your most valuable asset: your people.
Which providers offer the most affordable group policies?
Finding the "most affordable" group Private Medical Insurance (PMI) is about balancing cost with meaningful cover. For a small business, a cheap policy that doesn't deliver when an employee needs it is a false economy. The best providers offer flexible, modular policies that allow you to control costs effectively.
In 2025, the leading contenders for affordable and flexible SME health insurance are:
- Aviva: Known for its strong digital tools and highly customisable "Solutions" policy.
- AXA Health: A major player with a focus on guided healthcare pathways to manage costs.
- Bupa: Arguably the most recognised brand in UK health insurance, offering comprehensive options.
- Vitality: Unique for its wellness-centric model that rewards healthy living with premium discounts.
- WPA: A not-for-profit insurer praised for its customer service and flexible "shared responsibility" options.
Affordability depends entirely on the choices you make. A policy with a high excess, a limited hospital list, and no out-patient cover will always be cheaper than an all-encompassing plan. The key is to find the sweet spot that fits your budget while still providing a valuable employee benefit.
Here is a quick overview of how these providers stack up on core features for SMEs.
| Feature | Aviva | AXA Health | Bupa | Vitality | WPA |
|---|---|---|---|---|---|
| Best For | Flexibility & Digital Tools | Guided Pathways | Brand Trust & Comprehensive Cover | Wellness Incentives | Customer Service & Choice |
| Cost-Saving Focus | 'Expert Select' & 6-Week Wait | Guided Consultant Lists | Tiered Hospital Networks | Healthy Living Discounts | Co-payment Options |
| Minimum Group Size | 1+ (Business) / 2+ (Group) | 2+ | 2+ | 2+ | 2+ |
| Digital GP Access | Yes (Aviva Digital GP) | Yes (Doctor at Hand) | Yes (Babylon) | Yes (Vitality GP) | Yes (WPA Health) |
| Mental Health Support | Strong, often included | Comprehensive options | Extensive, market-leading | Included as standard | Good, with flexible add-ons |
The best provider for your business will depend on your specific priorities—be it cost, wellness features, or the breadth of medical cover.
Why Your SME Should Consider Private Medical Insurance in 2025
For a small or medium-sized enterprise, every employee is crucial. An unexpected illness can have a significant impact on your operations. Investing in group health insurance is no longer just a 'nice-to-have' perk; it's a strategic business decision.
Here’s why it matters more than ever:
1. Tackle NHS Waiting Lists Head-On
The single biggest driver for PMI uptake is the strain on the National Health Service. As of mid-2024, NHS England's referral to treatment (RTT) waiting list stood at over 7.5 million cases. Many patients wait months for initial consultations and even longer for diagnostic tests and elective surgery.
- Real-World Impact: An employee with persistent back pain might wait 18 weeks for an MRI scan on the NHS, followed by another lengthy wait for treatment. With PMI, they could see a specialist and have the scan within a week or two, leading to a faster recovery and return to work.
2. Reduce the Cost of Sickness Absence
Employee absence comes with a hefty price tag. According to the Office for National Statistics (ONS), an estimated 185.6 million working days were lost because of sickness or injury in the UK in 2022, the highest level in over a decade.
For an SME, the absence of a key team member means lost productivity, project delays, and extra pressure on colleagues. PMI helps by:
- Speeding up diagnosis: Fast access to specialists and scans.
- Accelerating treatment: Bypassing long NHS waits for procedures like hernia repairs, cataract surgery, or joint replacements.
- Providing proactive support: Access to digital GPs and mental health services can prevent minor issues from becoming major ones.
3. Attract and Retain Top Talent
In a competitive job market, a strong benefits package helps you stand out. Private health cover is consistently one of the most valued employee benefits. Offering it shows you are an employer who invests in the health and wellbeing of your team, which can be a deciding factor for a candidate choosing between you and a competitor.
4. Boost Morale and Demonstrate Duty of Care
Providing health insurance sends a powerful message to your staff: "We care about you." This fosters loyalty, improves morale, and builds a positive company culture where employees feel valued and supported. It demonstrates a genuine commitment to their wellbeing beyond the workplace.
Understanding the Core Components of an SME Health Insurance Policy
To find an affordable policy, you first need to understand its building blocks. UK private medical insurance is typically modular, allowing you to add or remove layers of cover to control the price.
Core Cover: In-patient and Day-patient Treatment
This is the foundation of every PMI policy. It covers treatment where you need a hospital bed.
- In-patient: Treatment that requires an overnight stay in hospital (e.g., a knee replacement).
- Day-patient: A planned procedure where you are admitted to hospital and discharged the same day (e.g., an endoscopy).
This core cover typically includes hospital accommodation fees, surgeon and anaesthetist fees, and essential tests and nursing care while you are admitted.
Optional Add-on: Out-patient Cover
This is one of the most significant cost drivers. It covers medical care that doesn't require a hospital bed.
- Specialist consultations: Seeing a consultant cardiologist or dermatologist, for example.
- Diagnostic tests and scans: MRI, CT, and PET scans, X-rays, and blood tests.
- Therapies: Post-operative physiotherapy or chiropractic sessions.
You can make your policy much more affordable by limiting or removing this cover. Common options include:
- Full Cover: The most expensive option, covering all eligible out-patient costs.
- Capped Cover: Limiting the out-patient benefit to a set amount per year (e.g., £500, £1,000, or £1,500). This is a popular and effective way to save money.
- No Cover: The cheapest option. The employee would use the NHS for diagnosis and then use the PMI for in-patient treatment if needed.
Key Cost Levers You Control
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Excess: This is the amount an employee pays towards a claim each year. For example, with a £250 excess, the employee pays the first £250 of their claim, and the insurer pays the rest. A higher excess (£500 or £1,000) will significantly lower your monthly premium.
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Hospital List: Insurers group UK private hospitals into tiers. A policy that only includes local or regional hospitals will be much cheaper than one that includes premium central London hospitals like The London Clinic or The Cromwell.
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Underwriting: This is how the insurer assesses the risk of your group.
- Moratorium (Mori): The most common for SMEs. It's a "wait and see" approach. The policy automatically excludes any condition a member has had symptoms, treatment, or advice for in the 5 years before joining. However, if they go 2 full years on the policy without any issues relating to that condition, it may become eligible for cover. It's simple and requires no medical forms.
- Full Medical Underwriting (FMU): Each employee completes a detailed health questionnaire. The insurer then lists specific exclusions for each person based on their medical history. This can sometimes be cheaper if your team is very healthy.
- Medical History Disregarded (MHD): This is the gold standard, typically available for groups of 20+ employees. It ignores all pre-existing conditions and provides cover, subject to policy terms. It is the most expensive option but offers the most comprehensive cover.
Critical Information: What UK PMI Does Not Cover
It is vital to understand the limitations of private medical insurance to manage expectations within your team. PMI is designed for a specific purpose and does not replace the NHS.
PMI is designed to treat new, acute conditions that arise after you take out the policy.
Pre-existing and Chronic Conditions
This is the most important exclusion to understand.
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Pre-existing Conditions: Standard PMI policies (those with Moratorium or Full Medical Underwriting) will not cover medical conditions an employee had before the policy start date. For example, if an employee has a history of knee trouble, treatment for that same knee will likely be excluded.
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Chronic Conditions: PMI does not cover the routine management of long-term conditions that cannot be cured. This includes conditions like diabetes, asthma, hypertension (high blood pressure), epilepsy, and Crohn's disease. While PMI might cover an acute flare-up of a chronic condition, it will not pay for the day-to-day monitoring, check-ups, or medication needed to manage it. That remains the role of the NHS.
Other Common Exclusions
- Emergency Services: A&E visits, ambulance services, and immediate trauma care are handled by the NHS.
- Routine Pregnancy and Childbirth: Normal pregnancy is not covered, though some policies may cover complications.
- Cosmetic Surgery: Procedures done purely for aesthetic reasons are excluded.
- Self-inflicted Injuries: Including those related to substance misuse.
- Allergies, Dialysis, and Organ Transplants are often excluded or have specific limits.
Top UK Private Health Insurance Providers for SMEs in 2025: A Detailed Look
Each provider has a different approach. Choosing the right one depends on your company culture, budget, and priorities. A specialist broker like WeCovr can help you navigate these options to find the perfect fit at no cost to you.
| Provider | SME Focus | Affordability Levers | Key Wellness Perk |
|---|---|---|---|
| Aviva | Highly flexible 'Solutions' policy; strong digital offering. | 'Expert Select' guided consultant list; 6-week NHS wait option; reduced out-patient cover. | Excellent mental health support through the app; discounts on gyms and fitness trackers. |
| Bupa | Trusted brand name; comprehensive 'Bupa By You' product. | Tiered hospital lists ('Essential Access'); choice of excess levels. | Market-leading mental health cover; 24/7 Digital GP access. |
| AXA Health | Emphasis on guided pathways and digital healthcare access. | 'Guided Option' for specialist choice; 'Diagnostics Only' plans. | 'Doctor at Hand' 24/7 virtual GP service; Proactive Health Gateway. |
| Vitality | Focus on rewarding healthy behaviour for premium reduction. | High excess options; 'Consultant Select'; huge discounts for active members. | Points-based rewards for activity (free coffee, cinema tickets, Apple Watch). |
| WPA | Not-for-profit ethos; excellent customer service. | 'Shared Responsibility' co-payment; flexible benefits tailoring. | Focus on personal service and direct access to claims handlers. |
Aviva
Aviva is a giant in the UK insurance market and its PMI offering is known for being modern and flexible. Their 'Solutions' product is well-suited for SMEs who want to build a policy from the ground up.
- Affordability: Aviva's 'Expert Select' option is a key cost-saver. It guides employees to a curated list of high-quality consultants, helping to control costs. Their '6-week wait' option is also very popular, dramatically reducing premiums by agreeing to use the NHS if treatment is available within six weeks.
- Wellness: Aviva has a strong focus on mental health, often including benefits as standard. Their Aviva Digital GP app provides 24/7 access to a doctor, and they offer various wellbeing resources and gym discounts.
Bupa
Bupa is synonymous with private healthcare in the UK. For an SME, choosing Bupa offers the reassurance of a trusted, household name. Their 'Bupa By You' policy is comprehensive and well-regarded.
- Affordability: You can control costs by selecting their 'Essential Access' hospital network, which excludes the most expensive hospitals. Adjusting excess levels and out-patient limits provides further control.
- Wellness: Bupa has some of the most extensive mental health cover on the market, covering more conditions and offering more support than many competitors. Their digital GP service and direct access to certain therapies (without needing a GP referral) are also major plus points.
AXA Health
AXA Health is a forward-thinking provider with a strong emphasis on digital health and streamlined patient journeys. Their plans are designed to be easy to understand and use.
- Affordability: The 'Guided Option' is central to AXA's cost-control strategy. Like Aviva's Expert Select, it directs members to a pre-approved list of specialists. They also offer innovative plans like 'Diagnostics Only', which gives employees fast access to scans and tests before they return to the NHS for treatment—a very cost-effective solution.
- Wellness: Their 'Doctor at Hand' service, powered by Teladoc Health, is a standout feature, providing 24/7 GP access via phone or video. They also provide a 'Working Body' service for members with muscle, bone, and joint pain, offering quick access to physiotherapy.
Vitality
Vitality has disrupted the UK health insurance market with its innovative model that directly links premiums to healthy living. It's a great choice for SMEs with a young, active, or engaged workforce.
- Affordability: The primary way to save is by engaging with the 'Vitality Programme'. Employees earn points for activities like walking, working out, and completing health checks. The more points they earn, the bigger the discounts on their renewal premium and the more rewards they unlock. Choosing a high excess is also an effective strategy.
- Wellness: This is Vitality's entire philosophy. The rewards are a powerful incentive: weekly coffees, cinema tickets, discounts on fitness trackers like Apple Watch, and reduced gym membership fees. It gamifies health in a way that can genuinely improve employee wellbeing.
WPA
Western Provident Association (WPA) is a not-for-profit insurer with a stellar reputation for customer service. They are often praised for their straightforward claims process and human-centric approach, which can be a big plus for SMEs who want a personal touch.
- Affordability: WPA offers a unique 'Shared Responsibility' option. This is a form of co-payment where the employee pays a percentage (e.g., 25%) of each claim, significantly reducing the premium. It encourages employees to be mindful of treatment costs.
- Wellness: While not as rewards-focused as Vitality, WPA provides excellent digital health tools and a focus on preventative care. Their policies are highly flexible, allowing businesses to tailor cover very precisely to their needs and budget.
How to Make Your SME Group Policy More Affordable
Worried about the cost? You have more control than you think. Here are six practical steps to design a high-value, low-cost PMI scheme.
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Choose a Higher Excess: The simplest way to cut your premium. Increasing the excess from £100 to £500 can reduce the price by 20-30%. It asks employees to share a small part of the initial cost in return for a much lower overall premium for the business.
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Opt for a 'Guided' Option: Letting the insurer choose the specialist from their approved list (e.g., Aviva's 'Expert Select' or AXA's 'Guided Option') helps them manage costs with pre-agreed fee structures. This saving is passed directly on to you.
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Limit the Hospital List: Ask yourself: do my employees really need access to premium London hospitals? For most of the UK, a quality regional or national hospital list is more than adequate and far more affordable.
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Introduce a 6-Week NHS Wait Option: This is one of the most effective cost-saving tools. The policy will only pay for in-patient treatment if the NHS waiting list for that procedure is longer than six weeks. Given the current pressures on the NHS, this option still provides immense value while cutting premiums by up to 40%.
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Reduce Out-patient Cover: Full out-patient cover is a luxury. A more pragmatic approach is to cap it at £1,000 per member per year. This covers the most likely scenarios (a few consultations and a scan) without the high price tag of unlimited cover.
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Use a Specialist Broker like WeCovr: An independent broker doesn't cost you anything—they are paid a commission by the insurer you choose. Their value is immense. They will:
- Compare the entire market for you.
- Explain the complex pros and cons of each policy.
- Leverage their relationships with insurers to find the best possible terms.
- Handle the application and administration, saving you hours of work.
The Hidden Value: EAPs and Wellness Benefits
Modern private medical insurance is about more than just surgery. Many policies now come bundled with a range of services designed to support an employee's overall wellbeing, often at no extra cost.
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Employee Assistance Programmes (EAPs): These are confidential 24/7 helplines that offer employees support with a wide range of life's challenges, including financial worries, legal issues, stress, and relationship problems. An EAP can be an invaluable, low-cost way to support your team's mental resilience.
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Digital GPs: The ability to book a video call with a GP at any time of day is a game-changer for productivity. An employee can get a diagnosis and a prescription without taking a half-day off work to visit their local surgery.
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Mental Health Support: Most providers now offer dedicated pathways for mental health, including access to counselling, CBT (Cognitive Behavioural Therapy) sessions, and self-help apps.
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Exclusive WeCovr Benefits: When you arrange your PMI through WeCovr, your team gets complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero. Plus, you'll receive discounts on other types of business and personal insurance, adding even more value to your benefits package.
The Process: How to Set Up a Group PMI Scheme
Setting up a policy is straightforward with the right guidance.
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Define Your Goals and Budget: Are you aiming to reduce absence, boost recruitment, or both? How much can you realistically invest per employee per month? (Prices can start from as little as £30 per employee per month).
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Decide Who to Cover: You can cover all employees, or just a specific group (e.g., senior management). Remember that PMI is a 'Benefit in Kind', so it has tax implications for the employee (see FAQs).
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Contact an Expert Broker: This is the most important step. A broker like WeCovr will work with you to understand your needs and then present you with clear, jargon-free options from across the market.
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Choose Your Cover Level: With your broker's help, you'll select the right combination of excess, hospital list, and out-patient cover that aligns with your budget.
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Select Underwriting: For a new SME scheme, Moratorium underwriting is usually the quickest and simplest option.
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Launch and Communicate: Once the policy is live, make sure your employees understand their new benefit. A good broker will provide materials to help you explain how to make a claim and access the wellness features.
Is private health insurance a taxable benefit for employees in the UK?
Can our SME group policy cover pre-existing conditions for our employees?
What is the minimum number of employees for a group PMI policy?
Why should our SME use a broker like WeCovr instead of going direct to an insurer?
Ready to protect your team and grow your business?
Navigating the private medical insurance market can be complex, but you don't have to do it alone. The expert advisors at WeCovr are here to help.
We provide free, no-obligation quotes and impartial advice tailored to your SME. Let us do the hard work of comparing the market to find you the most effective and affordable group health insurance policy for 2025.
[Get Your Free SME Health Insurance Quote Today]
Why private medical insurance and how does it work?
What is Private Medical Insurance?
Private medical insurance (PMI) is a type of health insurance that provides access to private healthcare services in the UK. It covers the cost of private medical treatment, allowing you to bypass NHS waiting lists and receive faster, more convenient care.How does it work?
Private medical insurance works by paying for your private healthcare costs. When you need treatment, you can choose to go private and your insurance will cover the costs, subject to your policy terms and conditions. This can include:• Private consultations with specialists
• Private hospital treatment and surgery
• Diagnostic tests and scans
• Physiotherapy and rehabilitation
• Mental health treatment
Your premium depends on factors like your age, health, occupation, and the level of cover you choose. Most policies offer different levels of cover, from basic to comprehensive, allowing you to tailor the policy to your needs and budget.
Questions to ask yourself regarding private medical insurance
Just ask yourself:👉 Are you concerned about NHS waiting times for treatment?
👉 Would you prefer to choose your own consultant and hospital?
👉 Do you want faster access to diagnostic tests and scans?
👉 Would you like private hospital accommodation and better food?
👉 Do you want to avoid the stress of NHS waiting lists?
Many people don't realise that private medical insurance is more affordable than they think, especially when you consider the value of faster treatment and better facilities. A great insurance policy can provide peace of mind and ensure you receive the care you need when you need it.
Benefits offered by private medical insurance
Private medical insurance provides numerous benefits that can significantly improve your healthcare experience and outcomes:Faster Access to Treatment
One of the biggest advantages is avoiding NHS waiting lists. While the NHS provides excellent care, waiting times can be lengthy. With private medical insurance, you can often receive treatment within days or weeks rather than months.
Choice of Consultant and Hospital
You can choose your preferred consultant and hospital, giving you more control over your healthcare journey. This is particularly important for complex treatments where you want a specific specialist.
Better Facilities and Accommodation
Private hospitals typically offer superior facilities, including private rooms, better food, and more comfortable surroundings. This can make your recovery more pleasant and potentially faster.
Advanced Treatments
Private medical insurance often covers treatments and medications not available on the NHS, giving you access to the latest medical advances and technologies.
Mental Health Support
Many policies include comprehensive mental health coverage, providing faster access to therapy and psychiatric care when needed.
Tax Benefits for Business Owners
If you're self-employed or a business owner, private medical insurance premiums can be tax-deductible, making it a cost-effective way to protect your health and your business.
Peace of Mind
Knowing you have access to private healthcare when you need it provides invaluable peace of mind, especially for those with ongoing health conditions or concerns about NHS capacity.
Private medical insurance is particularly valuable for those who want to take control of their healthcare journey and ensure they receive the best possible treatment when they need it most.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get private medical insurance early?
👉 Many people are very thankful that they had their private medical insurance cover in place before running into some serious health issues. Private medical insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, and even our phones! Yet our health is the most precious thing we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy private medical insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of private medical insurance policies available in the market, including different levels of cover and policy types most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced insurance experts who are passionate about advising people on financial matters related to private medical insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable private medical insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
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Who Are WeCovr?
WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!