TL;DR
As an FCA-authorised broker that has arranged over 900,000 policies of various kinds, WeCovr understands the challenges UK businesses face with private medical insurance. You want the best value and benefits for your team, but the fear of losing cover for pre-existing conditions when switching providers is a significant barrier. This guide provides the definitive answer to that problem.
Key takeaways
- What Medical History Disregarded underwriting is and why it's the gold standard.
- The step-by-step process for switching providers while keeping MHD.
- The eligibility criteria you must meet.
- Common and costly mistakes to avoid.
- How an expert broker makes the entire process seamless and secure.
As an FCA-authorised broker that has arranged over 900,000 policies of various kinds, WeCovr understands the challenges UK businesses face with private medical insurance. You want the best value and benefits for your team, but the fear of losing cover for pre-existing conditions when switching providers is a significant barrier.
This guide provides the definitive answer to that problem. We will walk you through, step-by-step, how to switch your company health insurance provider while ensuring your employees’ medical histories are completely disregarded, protecting them from new exclusions.
A guide for companies looking to switch providers without losing coverage for their employees pre-existing conditions (MHD)
For any Finance Director, HR Manager, or business owner, reviewing the company’s private medical insurance (PMI) is a critical annual task. Premiums invariably rise, and the promise of better service or enhanced benefits from a competitor can be tempting.
However, the single biggest concern is this: "If we switch, will our employees lose cover for conditions they already have?"
This is where understanding Medical History Disregarded (MHD) underwriting is not just important—it's essential. A misstep during the switching process can lead to devastating consequences for your employees, potentially leaving them without cover for ongoing or past health issues.
This article is your comprehensive manual for navigating this complex process successfully. We will cover:
- What Medical History Disregarded underwriting is and why it's the gold standard.
- The step-by-step process for switching providers while keeping MHD.
- The eligibility criteria you must meet.
- Common and costly mistakes to avoid.
- How an expert broker makes the entire process seamless and secure.
What is Medical History Disregarded (MHD) Underwriting?
Medical History Disregarded is a type of underwriting for group health insurance schemes. In simple terms, it means the insurer agrees to cover eligible medical conditions for all employees, regardless of their previous medical history.
With MHD, your employees do not need to fill out any medical questionnaires. The insurer disregards any pre-existing conditions they may have had, provided the treatment is for an acute condition and is covered under the policy terms.
This is the most comprehensive and hassle-free form of underwriting available for UK businesses, offering complete peace of mind to your team.
How MHD Compares to Other Underwriting Types
To appreciate the value of MHD, it's helpful to see how it stacks up against the alternatives, which are more common for individual or very small group policies.
| Underwriting Type | How it Works | Impact on Pre-existing Conditions |
|---|---|---|
| Medical History Disregarded (MHD) | No medical questions asked. The insurer covers all eligible acute conditions. | Covered. Pre-existing acute conditions are generally covered from day one. |
| Moratorium (Mori) | No medical questions at the start. A waiting period (usually 2 years) applies. | Excluded initially. Conditions from the last 5 years are excluded until the member is symptom, advice, and treatment-free for that condition for a continuous 2-year period after joining. |
| Full Medical Underwriting (FMU) | Each member completes a detailed health questionnaire. | Explicitly excluded. The insurer reviews each application and applies specific exclusions for any declared pre-existing conditions. |
As the table shows, MHD is vastly superior for employees. Switching from a scheme with MHD to one with Moratorium or FMU underwriting would represent a significant downgrade in cover and could leave employees exposed.
Key Fact: Medical History Disregarded underwriting is the most favourable option for employees, as it provides cover for pre-existing acute conditions without medical questionnaires.
Why Companies Switch Business Health Insurance
While the risks are real, the reasons for wanting to switch providers are often compelling. A regular market review is simply good financial governance.
Common drivers for switching include:
- Rising Premiums: This is the number one reason. Premiums typically increase each year due to factors like employee age, general medical inflation (the rising cost of private treatment), and the scheme's claims history. Without a market review, you could be overpaying significantly.
- Poor Service Levels: Frustration with the current insurer is a major catalyst. This could be slow claims processing, difficulty getting pre-authorisation for treatment, or unhelpful administrative support.
- Desire for Better Benefits: The PMI market is constantly evolving. A competitor might offer superior benefits that are highly valued by your employees, such as:
- Enhanced mental health support and therapy sessions.
- Advanced cancer cover options (e.g., access to drugs not yet available on the NHS).
- Comprehensive digital GP services.
- Better wellness programmes and rewards.
- Changing Company Needs: Your business isn't static. A period of rapid growth, a change in employee demographics, or a new focus on employee wellbeing might mean your current plan is no longer the right fit.
If any of these resonate with you, a switch could be the right move—if managed correctly.
The Solution: How to Switch and Keep Medical History Disregarded
The great news is that you can switch providers and maintain your valuable MHD underwriting status. Insurers have a specific process for this, often referred to as a "Protected MHD Switch," "Continued Medical Disregard (CMD)," or involving "Continued Personal Medical Exclusions (CPME)" terms.
This process allows your group to move seamlessly from one insurer to another, carrying over the same underwriting basis. The new insurer effectively agrees to honour the terms of the old policy regarding medical history.
However, this is not an automatic right. It's a negotiation, and it requires a structured, professional approach.
Here is the proven, step-by-step process an expert broker like WeCovr follows to ensure your switch is successful:
Step 1: Engage an Independent PMI Broker
This is the most crucial step. Attempting to manage an MHD switch directly with insurers is fraught with risk. An independent broker acts as your advocate, understands the nuances of each insurer's criteria, and has the market leverage to negotiate the best terms. Their service is typically free to you, as they are paid a commission by the insurer you choose.
Step 2: Collate Your Scheme Information
Your broker will need key information to take to the market. This includes:
- A copy of your current policy certificate and benefits schedule.
- A full member list with dates of birth (anonymised if necessary at this stage).
- Your renewal invitation from your current insurer.
- Your claims history for the past 3-5 years. Your current insurer is obligated to provide this.
Step 3: Conduct a Full Market Review
Your broker will present your scheme information to all the major UK business health insurance providers, including Aviva, AXA Health, Bupa, and Vitality. They will specifically request that all quotes are provided on a Continued Medical Disregard basis.
Step 4: Analyse Insurer Quotes and Underwriting Terms
This is where a broker’s expertise shines. They will receive quotes and analyse them based on:
- Price: Is the premium competitive?
- Benefit Parity: Does the new policy offer like-for-like or better cover? They will flag any subtle but important differences in areas like outpatient limits, cancer care, or mental health pathways.
- Terms of Transfer: The broker will scrutinise the offer to ensure the MHD transfer is fully protected and there are no hidden clauses.
Step 5: Decision and Implementation
Your broker will present you with a clear, easy-to-understand report comparing your current plan with the new options. They will provide a recommendation but the final decision is yours. Once you decide, the broker manages the entire transition, including all paperwork with the old and new insurer, ensuring there is no break in cover.
Key Eligibility Criteria for a Continued MHD Switch
Insurers are taking on a significant risk when they accept a group on an MHD basis. Therefore, they have strict criteria for allowing a switch while maintaining this underwriting.
| Eligibility Factor | What Insurers Look For | Broker Insight |
|---|---|---|
| Group Size | Generally, a minimum of 10-20 employees is required. The larger the group, the easier it is to secure a protected switch. | For groups under 10, switching MHD can be very challenging, but not impossible. A specialist broker may find a solution, though options are limited. |
| Existing Cover | Your company scheme must already have Medical History Disregarded underwriting. | You cannot use this process to upgrade from a Moratorium or FMU scheme to an MHD scheme with a new provider. The goal is to continue MHD, not start it. |
| Claims History | Insurers will analyse your "loss ratio" (total claims paid out divided by total premiums paid in). A ratio consistently below 85% is viewed favourably. | A high loss ratio (e.g., over 100%) makes a switch very difficult. In this scenario, the best strategy may be to negotiate with your current insurer, a task your broker can handle. |
| Continuous Cover | There must be no gap between the end date of your old policy and the start date of the new one. | A broker will manage the timings precisely to ensure a seamless transition and prevent any employee from being left uninsured, even for a day. |
Crucial Clarification: PMI, Pre-existing Conditions, and Chronic Illness
This is the most misunderstood aspect of UK private medical insurance, and it's vital that employers and employees are clear.
- Standard UK PMI is for acute conditions. An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery (e.g., joint replacement, cataract surgery, hernia repair).
- Standard UK PMI does not cover chronic conditions. A chronic condition is one that has no known cure, is long-lasting, and requires ongoing management (e.g., diabetes, asthma, hypertension, Crohn's disease).
So, how does MHD affect this?
Medical History Disregarded underwriting changes the rules for pre-existing acute conditions.
Real-Life Scenario:
- An employee, Sarah, had surgery on her shoulder (an acute condition) three years before joining your company.
- Your company has an MHD health insurance scheme.
- A year after joining, Sarah's shoulder problem flares up again and requires further investigation.
- Result: Because the scheme is on an MHD basis, the insurer will cover the eligible costs for her pre-existing acute shoulder condition. If the scheme had been on a Moratorium basis, this would likely have been excluded.
Crucially, MHD does not add cover for chronic conditions. The day-to-day management, medication, and check-ups for a chronic condition like diabetes will not be covered, even on an MHD policy. However, if that employee were to suffer a sudden, unexpected acute complication as a result of their diabetes, it may be covered, subject to the policy's specific terms.
Common (and Costly) Mistakes Companies Make
Navigating the PMI market without specialist guidance can lead to serious errors. Here are the most common mistakes we see at WeCovr:
- The "Do-It-Yourself" Approach: Going directly to one insurer limits your options and negotiating power. You won't know if you're getting the best deal or if another provider offers a better policy for the same price.
- Focusing Purely on the Headline Price: A cheaper premium can often mean a significant reduction in cover. It's vital to compare benefits on a like-for-like basis. Downgrading cancer cover or mental health support to save 10% on the premium is often a false economy.
- Ignoring the Claims Data: Not requesting or understanding your scheme's loss ratio is like trying to negotiate without knowing your own strength. A good claims history is your biggest bargaining chip.
- Leaving the Review Too Late: A proper market review and negotiation takes time—ideally 6-8 weeks. Starting the process a few weeks before your renewal date creates unnecessary pressure and limits your options.
- Failing to Communicate with Employees: A switch in provider, even for a better deal, can cause anxiety. Clear communication explaining that their level of cover (and MHD status) is protected is key to a smooth transition.
How WeCovr Manages Your Switch at No Cost
Working with a specialist broker like WeCovr simplifies the entire process and de-risks your decision-making. Best of all, our expert advice and management service comes at no direct cost to your business.
How does it work? We are paid a commission by the insurance provider you ultimately choose. This commission is already factored into the insurer's standard pricing, so you pay the same (or often less, due to our negotiating power) than you would by going direct.
Our process is designed for clarity and peace of mind:
- Free Initial Review: We start with a no-obligation call to understand your current scheme, your budget, and what you want to achieve.
- Comprehensive Market Analysis: We use our expertise and industry relationships to source quotes from all the UK's leading insurers, ensuring they are all on a continued MHD basis.
- Transparent Comparison Report: We distil the complex policy documents into a simple, clear report, comparing price, benefits, and service so you can make an informed choice.
- Seamless Implementation: We handle 100% of the administration, liaising with your old and new providers to guarantee a smooth switch with no loss of cover.
- Year-Round Support: Our job doesn't end once you've switched. We are here to support you and your employees with any queries throughout the year and will proactively manage your renewal next year.
As a WeCovr client, you also gain complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, and can benefit from exclusive discounts on other business and personal insurance products.
Ready to Review Your Business Health Insurance?
Switching your business health insurance can unlock significant savings and provide your employees with superior benefits. The key to success is ensuring your valuable Medical History Disregarded underwriting is protected throughout the process.
While the process is complex, the path is clear: expert guidance is essential. Don't risk your employees' health cover by going it alone.
Contact the WeCovr team today for a free, no-obligation review of your current company PMI scheme. Let our specialists do the hard work of finding you better value, while you get the peace of mind that your team’s health and wellbeing remain fully protected.
If we switch on a continued MHD basis, will our employees need to complete medical questionnaires?
What is a claims "loss ratio" and why is it so important for switching?
Can we still switch providers if our scheme has a high claims history?
How much can a business typically save by switching health insurance provider?
Sources
- Office for National Statistics (ONS): Inflation, earnings, and household statistics.
- HM Treasury / HMRC: Policy and tax guidance referenced in this topic.
- Financial Conduct Authority (FCA): Consumer financial guidance and regulatory publications.
