TL;DR
As an FCA-authorised expert with over 900,000 policies of various kinds arranged for our clients, WeCovr helps UK businesses navigate the complexities of private medical insurance. This guide shares best practices for creating a corporate health scheme that delivers real value for your employees and your organisation.
Key takeaways
- In an era of record NHS waiting lists and a growing focus on employee wellbeing, a well-designed private health cover plan is one of the most valued benefits you can offer.
- This article will walk you through the best practices we've identified, helping you build a corporate health scheme that truly works.
- The landscape of employee benefits has changed dramatically.
- A corporate health scheme is no longer a simple 'perk' for senior management; it's a strategic tool for organisations of all sizes.
- Lessons from thousands of group insurance deployments across the UK show a clear trend: the most successful schemes are not 'off-the-shelf' products.
As an FCA-authorised expert with over 900,000 policies of various kinds arranged for our clients, WeCovr helps UK businesses navigate the complexities of private medical insurance. This guide shares best practices for creating a corporate health scheme that delivers real value for your employees and your organisation.
Lessons from group insurance deployments
The landscape of employee benefits has changed dramatically. A corporate health scheme is no longer a simple 'perk' for senior management; it's a strategic tool for organisations of all sizes. In an era of record NHS waiting lists and a growing focus on employee wellbeing, a well-designed private health cover plan is one of the most valued benefits you can offer.
Lessons from thousands of group insurance deployments across the UK show a clear trend: the most successful schemes are not 'off-the-shelf' products. They are carefully tailored, thoughtfully communicated, and consistently reviewed programmes that align with a company's culture and its people's specific needs.
Getting it right can lead to:
- Reduced Sickness Absence: Quicker access to diagnostics and treatment gets employees back to health and work faster.
- Enhanced Recruitment and Retention: A top-tier benefits package makes you an employer of choice.
- Improved Morale and Productivity: Staff who feel cared for are more engaged, loyal, and productive.
This article will walk you through the best practices we've identified, helping you build a corporate health scheme that truly works.
Defining Your Objectives: The Foundation of a Successful Scheme
Before you look at a single policy document, the first step is to define what you want to achieve. A scheme implemented without clear goals is likely to be underutilised and seen as a poor investment.
Ask your leadership team: what is the primary driver for introducing or reviewing our health insurance?
Common objectives include:
- Reducing sickness absence: The ONS reported the UK sickness absence rate hit 2.8% in 2023, the highest level since 2008. PMI can directly address this by speeding up treatment.
- Attracting and retaining top talent: In a competitive job market, comprehensive health benefits can be a deciding factor for candidates.
- Improving employee morale and engagement: Showing a tangible commitment to staff wellbeing fosters a positive and supportive culture.
- Managing health-related business risks: Ensuring key personnel can get fast treatment minimises disruption.
- Controlling long-term costs: Proactively managing health can reduce the impact of long-term illness on the business.
Once you have your primary goals, you can establish metrics to measure success.
| Objective | Key Metric to Track |
|---|---|
| Reduce Sickness Absence | Company absence rate vs. national average (ONS data). |
| Improve Talent Retention | Staff turnover rates; feedback from exit interviews. |
| Boost Recruitment | Number of applicants per role; feedback from candidates on the benefits package. |
| Enhance Employee Morale | Annual employee engagement or satisfaction survey scores. |
| Increase Scheme Engagement | Policy uptake rate; usage of value-added services (e.g., virtual GP). |
Aligning your scheme's design with these objectives is the most critical best practice. For example, if your main goal is to reduce absence from musculoskeletal issues, you'll want a plan with excellent physiotherapy and diagnostics cover.
Understanding Your Workforce: Tailoring a Scheme That Works
A one-size-fits-all approach to health insurance rarely succeeds. Your employees are not a uniform group; they have different needs, priorities, and life stages. The best corporate schemes are built on a solid understanding of the workforce demographics.
Consider factors such as:
- Age Profile: A younger workforce might prioritise mental health support, digital GP access, and wellness benefits. An older demographic may be more focused on comprehensive cancer care and cover for conditions like cataracts or joint replacements.
- Gender Split: Benefits like enhanced maternity cover or specific men's/women's health checks can be highly valued.
- Geographical Location: Employees in remote areas might value virtual services, while those in major cities might want a wide choice of central hospitals.
- Job Roles: Are your staff mainly office-based (risk of sedentary issues, eye strain) or in manual roles (risk of musculoskeletal injury)?
How to Gather This Insight
The most effective tool is an anonymous employee survey. Asking your staff what they value is a powerful way to ensure the scheme you choose will be appreciated and used.
Keep it simple. Ask questions like:
- If the company were to offer a health benefit, which of these would you value most? (e.g., Private GP, Dental, Mental Health Support, Physio).
- How important is quick access to medical specialists to you?
- Would you use a virtual (phone/video) GP service?
This data allows you and your PMI broker to build a plan that addresses genuine needs, maximising the return on your investment.
| Employee Segment | Likely Health & Wellness Priorities |
|---|---|
| Graduates & Young Professionals | Digital GP, Mental Health Support (apps, therapy), Gym Discounts |
| Mid-Career & Young Families | Family Cover Options, Fast Diagnostics for children, Dental/Optical |
| Senior Staff & Older Workers | Comprehensive Cancer Care, Joint Replacement, Cataract Surgery, Cardiac Cover |
Choosing the Right Type of Corporate Health Scheme
"Health insurance" is a broad term. There are several types of schemes, each serving a different purpose. Often, the best solution is a blend of different products.
1. Private Medical Insurance (PMI) This is the most comprehensive option. PMI is designed to cover the costs of diagnosis and treatment for acute conditions. An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and return you to your previous level of health.
Crucial Point: Standard UK private medical insurance does not cover pre-existing conditions (illnesses you already had before joining) or chronic conditions (long-term illnesses that cannot be cured, such as diabetes, asthma, or high blood pressure). PMI is for new, eligible conditions that arise after your policy begins. The NHS remains responsible for managing chronic conditions and emergencies.
2. Health Cash Plans These are not insurance in the same way as PMI. A health cash plan helps employees cover routine healthcare costs. The employee pays for a treatment (like a dental check-up or an eye test), and then claims a percentage of the cost back, up to an annual limit. They are a low-cost, highly-valued benefit that encourages preventative care.
3. Employee Assistance Programmes (EAPs) An EAP is a confidential support service that can help employees with a wide range of personal and work-related problems. This often includes:
- 24/7 telephone counselling for stress, anxiety, and depression.
- Legal and financial advice.
- Support for issues like bereavement or relationship problems. Many modern PMI policies now include an EAP as a standard feature.
4. Specialised Plans (Dental, Optical) While sometimes included in PMI or cash plans, these can also be offered as standalone benefits, providing more extensive cover for routine and major dental or optical work.
| Scheme Type | Primary Purpose | Typical Cost Per Employee | Key Benefit |
|---|---|---|---|
| Private Medical Insurance (PMI) | Treatment for new, acute conditions. | Medium to High | Bypasses NHS waiting lists for eligible treatments. |
| Health Cash Plan | Budgeting for routine healthcare costs. | Low | Money back on everyday costs like dental, optical, and therapies. |
| Employee Assistance Programme (EAP) | Confidential mental health and life support. | Very Low | Immediate access to counselling and advice, reducing stress-related absence. |
An expert broker like WeCovr can help you analyse which combination of these schemes best fits your objectives and budget, providing quotes from the whole market at no cost to you.
Underwriting Options Explained: The Financial Nuts and Bolts
Underwriting is how an insurer assesses risk and decides on the terms of your policy. For group schemes, there are several options, each with significant implications.
1. Medical History Disregarded (MHD) This is the gold standard for corporate health insurance and typically available to groups of 20+ employees (though sometimes fewer). With MHD, the insurer agrees to cover eligible conditions regardless of an employee's previous medical history. This means pre-existing conditions can be covered, subject to the overall policy terms. It's simple to administer (no medical forms for staff) and offers the most comprehensive cover, making it highly attractive.
2. Full Medical Underwriting (FMU) Each employee completes a detailed medical questionnaire. The insurer then assesses this and may place exclusions on the policy for any pre-existing conditions. It can be more cost-effective for the company but is administratively heavy and can result in varied cover levels for different employees.
3. Moratorium Underwriting (MORI) This is a common choice for smaller group schemes. No initial medical questionnaire is needed. Instead, the insurer automatically excludes treatment for any condition that existed in the 5 years prior to the policy start date. However, if an employee goes for a continuous 2-year period after joining without needing treatment, advice, or medication for that condition, the exclusion may be lifted. This is often referred to as the '2-5 rule'.
4. Continued Personal Medical Exclusions (CPME) This option is for companies moving their scheme from one insurer to another. The new insurer agrees to carry over the same personal medical exclusions that were on the old policy, ensuring continuity of cover for employees.
| Underwriting Type | How It Works | Best For | Key Advantage |
|---|---|---|---|
| MHD | Insurer ignores past medical history. | Groups of 20+ employees. | Simple administration; covers pre-existing conditions. |
| Moratorium | Pre-existing conditions from last 5 years excluded for first 2 years. | Smaller groups seeking simplicity. | No initial medical forms. |
| FMU | Each member declares their full medical history. | Companies prioritising cost control over cover. | Potentially lower initial premium. |
| CPME | New insurer matches the underwriting from your previous provider. | Businesses switching their insurance provider. | Continuity of cover for all staff. |
Beyond the Basics: Integrating Wellness and Preventative Care
The most forward-thinking companies understand that a health scheme should do more than just pay for treatment when things go wrong. The best practice is to build a programme that actively encourages employees to stay healthy.
A focus on preventative wellness can significantly reduce long-term claims costs and boost productivity. The Chartered Institute of Personnel and Development (CIPD) consistently finds that stress is a leading cause of long-term workplace absence. Proactive support can make a huge difference.
Integrate these elements into your programme:
- Virtual GP Services: Now a standard feature on most good PMI policies, 24/7 access to a GP via phone or video call is incredibly popular. It reduces time away from work for minor appointments and encourages early intervention.
- Mental Health Support: Beyond a basic EAP, look for policies that offer access to a set number of therapy or counselling sessions. Mental health pathways are a key differentiator between modern providers.
- Wellness Apps and Discounts: Many insurers partner with services like Headspace, Fiit, or offer discounted gym memberships. This encourages healthy habits. As a WeCovr client, you and your employees also get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support healthy eating goals.
- Health and Lifestyle Advice: Promote healthy eating, good sleep hygiene, and regular physical activity through internal communications. A simple tip like encouraging a 15-minute walk at lunchtime can improve both physical and mental alertness.
- Annual Health Checks: For key executives or as a wider benefit, a yearly health assessment can spot potential issues like high cholesterol or blood pressure before they become serious problems.
By embedding wellness into your company culture, you transform your health insurance from a passive safety net into an active tool for improving the health of your entire workforce.
Communication is Key: Launching and Managing Your Scheme
You can have the best private health cover in the world, but if your employees don't understand it, don't value it, or don't know how to use it, the investment is wasted.
Effective communication is not a one-off launch email. It's an ongoing process.
Best Practices for Launch:
- Don't just talk about 'insurance': Frame it as a "Health and Wellbeing Programme".
- Use multiple channels: Announce the scheme in a company-wide meeting, follow up with clear emails, and provide easy-to-read digital brochures.
- Hold Q&A sessions: Host webinars or in-person "roadshows" where employees can ask questions. Your broker can and should help facilitate these.
- Create a simple 'How to Claim' guide: A one-page document that clearly explains the steps to using the policy is invaluable.
- Highlight the 'why': Explain that the company is investing in this because it values its employees' health and wellbeing.
Ongoing Engagement:
- Regular Reminders: Send out quarterly newsletters highlighting a specific benefit, e.g., "Don't forget you have access to 24/7 digital GP services" or "Winter is coming - here's how to use your cover for flu jabs."
- Share Success Stories: With permission, share anonymised stories of how the scheme has helped a colleague. For example, "A team member was able to get a knee operation in three weeks, helping them get back on their feet quickly."
- Integrate with Wellness Initiatives: Link your PMI benefits to company wellness weeks or mental health awareness days.
A good PMI broker will provide you with communication templates and support to ensure your launch is a success and engagement remains high.
Measuring Success: Reviewing and Optimising Your Scheme
A corporate health scheme should evolve with your business. An annual review is essential to ensure it continues to meet your objectives and provide value for money.
Work with your broker to analyse key data points:
- Claims Data: Your insurer can provide anonymised, high-level data. Are claims patterns changing? A spike in mental health claims might suggest you need to bolster your EAP. A rise in musculoskeletal claims could point to a need for better ergonomic assessments.
- Uptake Rates: How many eligible employees have joined the scheme? If the rate is low, it may indicate a communication issue or that the benefit isn't perceived as valuable.
- Employee Feedback: Use your annual engagement survey to ask staff how they rate the health scheme and what could be improved.
- Market Review: Are you still getting a competitive price? Your broker should re-broke the market for you each year to ensure your incumbent insurer remains the best option. Premiums can increase, so it's vital to check what other leading providers can offer.
This review process allows you to make data-driven decisions. You might decide to add a dental benefit, increase the outpatient limit, or switch insurers to get a better deal or enhanced cover. The goal is continuous improvement, ensuring your scheme remains fit for purpose year after year.
As a client of WeCovr, this annual review is a core part of our service. We handle the market analysis and negotiations, presenting you with clear, data-backed recommendations. We also offer discounts on other insurance products, such as life insurance or key person cover, to clients who purchase PMI, creating even greater value. Our high customer satisfaction ratings are a testament to our commitment to ongoing client support.
Are benefits from a corporate health scheme a taxable 'benefit in kind'?
Can a company health plan cover pre-existing conditions?
How many employees do I need for a group health insurance scheme?
Ready to explore the best private medical insurance UK options for your team?
Contact WeCovr today. Our expert advisors offer free, no-obligation consultations to help you compare the market and design a scheme that delivers real value for your business and your people.
Sources
- NHS England: Waiting times and referral-to-treatment statistics.
- Office for National Statistics (ONS): Health, mortality, and workforce data.
- NICE: Clinical guidance and technology appraisals.
- Care Quality Commission (CQC): Provider quality and inspection reports.
- UK Health Security Agency (UKHSA): Public health surveillance reports.
- Association of British Insurers (ABI): Health and protection market publications.
