Why Employers Are Offering More PMI in 2026
As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr has a unique insight into the UK benefits landscape. We're seeing a dramatic rise in employers exploring private medical insurance (PMI) to support their teams, and this article explains exactly why this trend is set to accelerate.
Business demand for PMI and employee expectations
In 2025, the conversation around employee benefits has shifted. It's no longer just about competitive salaries. A perfect storm of sustained pressure on the NHS, a greater focus on wellbeing post-pandemic, and a competitive job market has pushed private medical insurance from a 'nice-to-have' luxury to a strategic necessity for many UK businesses.
Employers are recognising that a healthy, happy workforce is a productive one. At the same time, employees are increasingly expecting their employers to play a more active role in their health and wellbeing. This convergence of business needs and employee expectations is fuelling an unprecedented demand for group PMI schemes.
The Shifting UK Healthcare Landscape
To understand why businesses are embracing PMI, we must first look at the wider healthcare environment in the UK. The landscape has changed profoundly in recent years, creating challenges that private health cover is uniquely positioned to address.
Unprecedented Pressure on the NHS
The National Health Service remains a cherished UK institution, providing incredible care to millions. However, it is facing significant and well-documented challenges.
- Waiting Lists: As of mid-2024, the number of people in England waiting for routine hospital treatment stood at around 7.5 million, according to NHS England data. Many of these individuals are of working age. For employers, this translates directly into lost productivity and extended periods of employee absence or reduced capacity.
- Diagnostic Delays: The wait for crucial diagnostic tests like MRIs, CT scans, and endoscopies can be lengthy. This "diagnostic bottleneck" creates anxiety for employees and delays the start of necessary treatment.
- GP Access: While GPs are working harder than ever, many people struggle to get a timely appointment. This can lead to minor issues escalating or employees taking time off work simply to try and contact their surgery.
Private medical insurance acts as a complementary partner to the NHS. It offers a fast-track route to diagnosis and treatment for acute conditions, allowing employees to bypass long waits and get back to health, and work, sooner.
The Critical Point: Acute vs. Chronic Conditions
It is vital to understand what standard UK private medical insurance is for. It is designed to cover acute conditions — illnesses or injuries that arise after you take out the policy and are expected to respond quickly to treatment.
Examples of acute conditions include:
- Joint pain requiring surgery (e.g., hip replacement)
- Hernias
- Cataracts
- Diagnosis and treatment of new symptoms
PMI does not cover pre-existing conditions (health issues you knew about before your policy began) or chronic conditions. A chronic condition is one that requires long-term management and has no known cure, such as diabetes, asthma, or high blood pressure. The NHS continues to provide the management for these long-term conditions.
Why Employers are Turning to PMI: The Business Case
Forward-thinking organisations aren't offering PMI out of pure altruism; they are making a calculated investment in their most valuable asset — their people. The return on this investment is clear and measurable.
1. Combating Absenteeism and Presenteeism
- Absenteeism: This is the cost of employees being off work due to illness. 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.
- Presenteeism: This is the hidden cost of employees who are unwell but still come to work. They are often less productive, more prone to making mistakes, and may prolong their recovery.
How PMI Helps: By providing fast access to medical care, PMI drastically reduces the time an employee spends waiting for treatment. An employee with debilitating back pain could see a specialist and get an MRI within a week through PMI, versus a potential wait of several months on the NHS. This swift intervention gets them the treatment they need to recover fully and return to being a productive member of the team.
2. The War for Talent: Gaining a Competitive Edge
In a tight labour market, attracting and retaining top talent is a major challenge. A comprehensive benefits package is a powerful differentiator. In sectors like technology, finance, and professional services, PMI is now often seen as a standard expectation rather than a perk.
Offering private health cover sends a powerful message to prospective and current employees: "We value you, and we invest in your wellbeing." This can be the deciding factor for a candidate choosing between two otherwise similar job offers.
3. Boosting Employee Morale and Loyalty
When an employee or their family member faces a health scare, it's an incredibly stressful time. Knowing they have a PMI policy to rely on provides immense peace of mind. This support fosters a deep sense of loyalty and gratitude towards the employer.
Organisations that invest in their employees' health see tangible benefits:
- Higher employee engagement scores
- Lower staff turnover rates, reducing recruitment and training costs
- A more positive and supportive company culture
4. A Proactive Approach to Workforce Wellbeing
Modern business strategy has moved beyond simply reacting to problems. The focus is now on proactive and preventative measures, and health is no exception. A group PMI policy is the cornerstone of a robust corporate wellness programme. It shows a commitment to health that goes beyond posters in the break room.
What Do Modern PMI Policies Include in 2026?
Private health cover has evolved far beyond just covering a stay in a private hospital. Today's policies are holistic health and wellbeing packages.
| Feature | Often Included as Standard | Often an Optional Add-on |
|---|---|---|
| In-patient & Day-patient Care | ✅ | |
| Comprehensive Cancer Cover | ✅ | |
| Virtual GP Appointments (24/7) | ✅ | |
| Basic Mental Health Support | ✅ | |
| Out-patient Diagnostics | Varies by Policy | ✅ (often with a financial limit) |
| Therapies (Physio, Osteo) | Varies by Policy | ✅ (often with a session limit) |
| Dental & Optical Cover | ❌ | ✅ |
| Advanced Mental Health Cover | ❌ | ✅ |
Let's break down some of the most valuable components:
- Digital GP Services: Most policies now offer 24/7 access to a private GP via phone or video call. This is incredibly convenient for employees, who can get medical advice, prescriptions, and referrals without taking time off work.
- Mental Health Support: This is one of the biggest growth areas. Recognising the UK's mental health crisis, insurers now typically include access to a set number of counselling or therapy sessions as standard. This allows employees to get confidential support quickly when they need it most.
- Wellness Programmes: Many providers, like Vitality and Aviva, integrate wellness incentives into their plans. Employees can earn rewards, such as coffee vouchers or cinema tickets, for engaging in healthy activities like tracking their steps or completing health assessments.
- Exclusive Member Benefits: When you arrange a policy through a broker like WeCovr, you can get even more. For example, WeCovr provides our PMI and Life Insurance clients with complimentary access to CalorieHero, our advanced AI-powered calorie and nutrition tracking app, helping them build healthier habits.
Employee Expectations in 2026: What the Workforce Wants
The demand for PMI is not just a top-down decision from management; it's being driven by a fundamental shift in what employees want and expect from their jobs.
-
Peace of Mind Above All: The primary driver for employees is the desire to avoid long waits for healthcare. The anxiety of being on a waiting list while in pain or with an undiagnosed condition is immense. PMI offers a direct solution to this fear.
-
A Focus on Holistic Health: Today's workforce, particularly younger generations, views health holistically. They want support for their physical health, mental resilience, and overall wellbeing. A benefit that only activates when they are seriously ill is less appealing than one that supports their day-to-day health with gym discounts, wellness apps, and mental health resources.
-
Flexibility and Control: PMI gives employees more choice. They can often choose the hospital, the specialist, and a time for treatment that fits around their work and family commitments. This sense of control is highly valued.
-
Support for the Whole Family: Many group schemes allow employees to add their partners and children to the policy, often at a competitive corporate rate. For an employee, knowing their family is also covered is an incredibly powerful retention tool for the employer.
The Financials: Is Group PMI Affordable for Businesses?
A common misconception is that private medical insurance is only for large corporations with deep pockets. This is no longer true. Thanks to the competitive nature of the group insurance market, even small businesses and start-ups can find affordable solutions.
How are Group PMI Premiums Calculated?
The cost of a group scheme is typically lower per person than an individual policy. The final premium depends on several factors:
- Number of Employees: The larger the group, the lower the average cost per person.
- Average Age of Workforce: A younger workforce will generally have lower premiums.
- Level of Cover: A basic plan covering in-patient care will be cheaper than a comprehensive plan with out-patient, dental, and therapy add-ons.
- Underwriting: For small groups, insurers may use 'moratorium' underwriting. For larger groups, 'Medical History Disregarded' (MHD) is often an option, which covers eligible pre-existing conditions and is a highly prized benefit.
- Location: Premiums can be higher in areas with more expensive private hospitals, such as Central London.
Is PMI a Taxable Benefit?
Yes. When an employer pays for an employee's private medical insurance, it is considered a 'Benefit in Kind' (BIK). This means the employee has to pay income tax on the value of the premium. The employer also has to pay National Insurance contributions on the benefit. The cost is reported to HMRC on a P11D form.
Despite the tax, the vast majority of employees still see it as a hugely valuable benefit, as the corporate rate the employer pays is almost always significantly cheaper than what they could get for an individual policy.
An expert PMI broker like WeCovr can help you understand all the cost implications and find a plan that delivers maximum value for your budget. We can also help you secure discounts on other types of business insurance if you take out a PMI or life insurance policy with us.
How to Implement a PMI Scheme for Your Business: A 6-Step Guide
Introducing a health insurance benefit can seem daunting, but it can be a smooth process with the right approach.
-
Define Your Objectives: What is your primary goal? Is it to reduce sickness absence, attract top talent, or improve morale? Your goal will influence the type of policy you choose.
-
Establish Your Budget: Decide how much the company can afford to invest per employee, per month. This will be the most important factor in narrowing down your options.
-
Understand Your Employees' Needs: Analyse your workforce demographics. A young, active team might value physiotherapy and a digital GP, while a more mature workforce may prioritise comprehensive cancer cover and quick access to specialist consultations.
-
Partner with an Expert Broker: This is the most critical step. Do not go directly to an insurer. An independent, FCA-authorised broker like WeCovr works for you, not the insurance company. We use our expertise and market knowledge to:
- Compare policies and prices from all the leading UK providers (like Axa, Bupa, Aviva, Vitality).
- Explain the complex jargon and policy details in plain English.
- Negotiate terms on your behalf.
- Help you find the perfect balance of cover and cost, at no extra charge to you. Our high customer satisfaction ratings reflect our commitment to finding the right solution for every client.
-
Choose the Right Policy: With your broker's guidance, you can select the provider and level of cover that best matches your objectives and budget.
-
Communicate Clearly to Your Team: Once the policy is in place, it's vital to launch it properly. Explain the benefits clearly, how to make a claim, and what is and isn't covered. A well-understood benefit is a well-used benefit.
Your Next Step
The evidence is clear: in 2025, offering private medical insurance is one of the most powerful strategic decisions a UK employer can make. It directly addresses the challenges of NHS pressures, meets the evolving expectations of the modern workforce, and delivers a tangible return on investment through a healthier, more loyal, and more productive team.
Ready to explore how private medical insurance can strengthen your business and support your employees? The friendly experts at WeCovr are here to provide clear, impartial advice tailored to your company's unique needs. We'll compare the market for you and help you build a benefits package that makes a real difference.
Is private medical insurance a taxable benefit for employees in the UK?
Does business health insurance cover pre-existing conditions?
What's the difference between moratorium and full medical underwriting?
Can small businesses and start-ups get group private medical insurance?
Related guides
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:
Our Group Is Proud To Have Issued 900,000+ Policies!
We've established collaboration agreements with leading insurance groups to create tailored coverage
How It Works
1. Complete a brief form
2. Our experts analyse your information and find you best quotes
3. Enjoy your protection!
Any questions?
Learn more
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!