Why Some Employers Offer PMI as a Perk — and How to Get It
As an FCA-authorised broker that has helped arrange over 800,000 policies, WeCovr provides expert insight into the UK’s private medical insurance market. In today's competitive job market, a strong benefits package is more crucial than ever, and private health cover is a highly sought-after perk for employees.
WeCovr examines the role of private health insurance in employee benefits
In the bustling landscape of UK employment, a good salary is just the starting point. Today’s workforce seeks more: they want to feel valued, supported, and secure. This is where employee benefits come into play, and few are as impactful as Private Medical Insurance (PMI).
Once seen as a luxury reserved for senior executives, company-sponsored private health cover is now a mainstream benefit offered by businesses of all sizes. But why do employers invest in it, and what does it really mean for you, the employee?
This comprehensive guide breaks down everything you need to know. We’ll explore the motivations behind employer-provided PMI, the tangible benefits for you, how to access and make the most of your cover, and what to do if your employer doesn’t offer it.
What is Employer-Provided Private Medical Insurance?
At its core, private medical insurance is a policy designed to cover the costs of private healthcare for specific medical conditions. When offered by an employer, it’s known as a 'group scheme'. The company pays the premium, either in full or partially, as part of your overall remuneration package.
The fundamental purpose of PMI in the UK is to provide prompt access to treatment 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. Examples include joint replacements, cataract surgery, or treatment for hernias.
- A chronic condition, by contrast, is a long-term illness that cannot be cured, only managed. Examples include diabetes, asthma, and hypertension.
Crucially, standard UK private medical insurance, whether individual or group, does not cover pre-existing or chronic conditions. Its role is to complement the NHS by providing faster access to eligible treatments for new, acute medical issues that arise after your policy begins.
| Feature | National Health Service (NHS) | Private Medical Insurance (PMI) |
|---|---|---|
| Cost | Free at the point of use, funded by taxation. | Paid for via monthly or annual premiums. |
| Access | Treatment is based on medical need and waiting lists. | Faster access to specialists and treatment. |
| Choice | Limited choice of hospital or specialist. | Greater choice of specialists and nationwide hospitals. |
| Waiting Times | Can be lengthy, particularly for non-urgent procedures. | Significantly shorter waiting times for diagnosis and treatment. |
| Core Function | Comprehensive care for everyone, including emergencies, chronic conditions, and acute care. | Primarily for planned, non-emergency treatment of acute conditions. |
| Comfort | Typically in a shared ward. | Often includes a private room with ensuite facilities. |
The Employer's Perspective: Why Offer PMI as a Perk?
For a business, offering PMI is a strategic investment, not just a benevolent gesture. The returns are measured in talent acquisition, productivity, and workforce resilience.
1. Attracting and Retaining Top Talent
In a tight labour market, a standout benefits package can be the deciding factor for a candidate choosing between two similar job offers. According to a 2025 survey by the Chartered Institute of Personnel and Development (CIPD), health and wellbeing benefits are a top-three consideration for over 60% of UK job seekers.
Offering PMI sends a powerful message: "We invest in our people's health." It positions the company as a caring and responsible employer, helping it attract high-calibre candidates and, just as importantly, retain its existing valuable staff.
2. Reducing Sickness Absence and Boosting Productivity
This is perhaps the most significant commercial driver. Long NHS waiting lists can mean an employee is off work, or working at reduced capacity, for months while awaiting diagnosis or treatment.
The Office for National Statistics (ONS) reported that a record 185.6 million working days were lost to sickness in 2023. With private health cover, an employee can often see a specialist within days and receive treatment within weeks. This swift process drastically reduces the length of sickness absence, allowing employees to return to full productivity sooner. The return on investment for the business can be substantial.
Example in Practice:
- An employee, Sarah, needs a hip replacement.
- Via NHS: She faces an 18-month wait. During this time, she is in pain, her mobility is limited, and she requires frequent time off for appointments and pain management. Her productivity suffers.
- With Company PMI: Sarah sees a specialist in a week and has the surgery within six weeks. She is back at work, fully recovered, within three to four months. The employer has avoided over a year of reduced productivity and absence.
3. Fostering a Culture of Wellbeing and Care
A company that actively supports employee health builds a positive and loyal workforce. PMI is often the cornerstone of a wider wellness strategy that might also include:
- Digital GP services for 24/7 medical advice.
- Mental health support, including counselling sessions.
- Gym membership discounts.
- Annual health screenings.
- Access to nutritionists and physiotherapists.
This holistic approach demonstrates a genuine commitment to employee wellbeing, which improves morale, engagement, and loyalty.
4. Financial and Tax Advantages for the Business
From a purely financial standpoint, there are direct benefits. The premiums an employer pays for a group PMI scheme are typically considered a legitimate business expense. This means they can be offset against the company's corporation tax bill, reducing the overall cost of providing the benefit.
5. Fulfilling a Duty of Care
For certain roles, particularly those involving frequent international travel or physically demanding tasks, PMI can be seen as part of an employer's duty of care. Providing comprehensive health cover, including international options, ensures employees have access to reliable medical care wherever their job takes them.
The Employee's Perspective: What Are the Benefits for You?
While the employer reaps strategic rewards, the direct benefits for you as an employee are tangible and can be life-changing.
1. Bypassing NHS Waiting Lists
This remains the number one reason people value private health cover. As of early 2025, NHS England figures show the elective care waiting list remains stubbornly high, with millions of treatment pathways yet to be started. For non-urgent but quality-of-life-impacting procedures like joint replacements or hernia repairs, the wait can be over a year.
PMI allows you to sidestep these queues, getting the treatment you need when you need it. This means less time spent in pain or discomfort and a faster return to your normal life.
2. Enhanced Comfort and Convenience
Private healthcare offers a level of comfort and flexibility not always possible within the NHS system. Benefits typically include:
- A private, en-suite hospital room.
- More flexible visiting hours for family.
- Choice over the timing of your appointments and surgery.
- A wider selection of hospitals from a pre-approved list.
- The ability to choose your consultant or surgeon.
3. Access to a Wider Range of Treatments and Drugs
While the NHS provides excellent care, it operates within strict budgetary constraints. This means some newer drugs, treatments, or specialised surgical techniques may not be routinely available. Private medical insurance can provide cover for:
- Advanced Cancer Drugs: Access to therapies not yet approved by the National Institute for Health and Care Excellence (NICE) for widespread NHS use.
- Specialist Therapies: More extensive access to physiotherapy, osteopathy, or chiropractic sessions.
- Minimally Invasive Techniques: Options for keyhole surgery that may reduce recovery time.
4. Digital GP Services and Mental Health Support
Modern PMI policies are much more than just hospital cover. Most now include a suite of valuable everyday health benefits:
- 24/7 Digital GP: Speak to a GP via phone or video call at any time, often with a prescription sent directly to your local pharmacy. This is incredibly convenient and avoids waiting for a surgery appointment.
- Mental Health Support: Access to a set number of counselling or therapy sessions for conditions like stress, anxiety, and depression, without needing a GP referral first.
- Wellness Apps and Discounts: Many insurers partner with wellness brands to offer gym discounts or access to health and fitness apps. At WeCovr, we provide complimentary access to our AI-powered calorie and nutrition tracker, CalorieHero, and offer discounts on other insurance policies when you take out PMI or life cover.
Is It 'Free'? Understanding the Tax Implications
While your employer pays the insurance premium, Her Majesty's Revenue and Customs (HMRC) considers company PMI a 'benefit in kind'. This means it is a non-cash benefit that has a monetary value, and you must pay income tax on it.
- Your employer will calculate the value of the benefit (the cost of the premium for your cover).
- They will report this to HMRC on a P11D form at the end of the tax year.
- The value of the premium is added to your income for tax purposes, and you pay tax at your usual rate (20%, 40%, or 45%).
- This is usually handled by adjusting your tax code, so the extra tax is deducted automatically from your salary each month.
Example: If the annual premium for your health cover is £800 and you are a basic-rate (20%) taxpayer, the extra tax you would pay is £160 per year, or about £13.33 per month. For most, this is a very small price for the peace of mind and access that PMI provides.
How to Get Private Health Cover Through Your Employer
If your company offers a PMI scheme, joining is usually straightforward.
Step 1: Check Your Employee Handbook and Benefits Portal
Your first port of call should be your company's HR portal, intranet, or employee handbook. This will outline the benefits available to you and specify your eligibility.
Step 2: Understand the Scheme's Details
Don't just tick the box. Take time to understand what you're signing up for. Key things to check include:
- Level of Cover: Is it a comprehensive plan with full outpatient cover, or a more basic plan focused on inpatient treatment only?
- The Excess: This is the amount you must contribute towards a claim. A typical excess is £100 or £250. A higher excess usually means a lower premium (and therefore less tax for you).
- Underwriting Type: Company schemes often have the most favourable underwriting terms.
- Medical History Disregarded (MHD): The gold standard. The insurer agrees to cover all eligible acute conditions, regardless of your past medical history. This is typically only available on large corporate schemes.
- Moratorium Underwriting: The most common type. You won't be covered for any condition you've had symptoms of, or received treatment for, in the five years before joining. However, if you go two continuous years on the policy without needing treatment for that condition, it may become eligible for cover.
- Hospital List: Which hospitals are you covered to use? Is it a national list or limited to a local network?
Step 3: The Enrolment Process
You can usually join the scheme when you first start your job. If you decline, you may have to wait until the annual 'enrolment window' to join later. The process is typically managed through an online benefits platform or by filling out a form from your HR department.
Step 4: Adding Family Members
Most group schemes allow you to add your partner and/or children to the policy. However, your employer will usually only pay for your premium. The cost for adding family members will be deducted from your salary. While this is an extra cost, it's often cheaper than taking out a separate family policy due to the group discount.
What Happens to Your PMI if You Leave Your Job?
This is a critical point that many people overlook. If you leave a company where you had PMI, you don't necessarily lose your cover. Most group schemes include a 'group leaver' option.
This allows you to continue your private health cover on a personal policy with the same insurer, crucially, without any new medical underwriting.
This is a huge advantage. It means any acute conditions that arose and were covered while you were employed will continue to be covered under your new individual plan. If you were to take out a brand new policy with a different insurer, those conditions would now be classed as pre-existing and would be excluded.
A specialist PMI broker like WeCovr can provide invaluable assistance in managing this transition, ensuring you maintain continuity of cover and understand the terms of your new personal policy.
Comparing Company PMI Schemes: What to Look For
If you are lucky enough to be choosing between employers, a detailed look at their PMI offering can be a useful tie-breaker. Here’s what to analyse:
| Feature | What to Look For | Why It Matters |
|---|---|---|
| Underwriting | Medical History Disregarded (MHD) is the best possible option. | MHD means your pre-existing conditions are not automatically excluded, offering far more comprehensive protection. This is a rare and high-value benefit. |
| Outpatient Cover | A 'full cover' option rather than a monetary limit (e.g., £1,000). | Consultations, diagnostic tests, and scans can quickly exceed a low outpatient limit, leaving you to pay the shortfall. Full cover is much more robust. |
| Cancer Cover | Comprehensive cover, including access to drugs not routinely available on the NHS. | This is one of the most valued aspects of PMI. Check if it includes chemotherapy, radiotherapy, and specialist consultations without limits. |
| Mental Health Cover | Generous limits for therapy/counselling, not just inpatient care. | Good mental health support is vital. Look for schemes that offer easy access to talking therapies without needing a GP referral first. |
| Excess Level | A low or zero excess paid for by the company. | A high excess can be a barrier to making a claim. A lower excess means less out-of-pocket expense for you when you need treatment. |
| Hospital List | A comprehensive national list that includes major city hospitals (e.g., in London). | A limited list might mean you have to travel far for treatment or can't use a hospital known for its speciality. |
| Family Cover | Whether the employer subsidises or contributes to the cost of adding dependents. | This can represent a significant saving compared to paying the full cost yourself. |
What if Your Employer Doesn't Offer PMI?
If your company doesn't provide private health cover, or if the cover offered is very basic, you can always arrange your own individual policy. This gives you complete control over the level of cover, the insurer, and the excess.
While it means you pay the full premium yourself, the peace of mind it provides is invaluable. This is where an independent PMI broker becomes your greatest asset.
The team at WeCovr specialises in navigating the private medical insurance UK market. We work with all the leading insurers to compare policies on your behalf, translating the jargon and finding a plan that fits your specific needs and budget. Our advice and comparison service is completely free, and we are dedicated to securing the best possible terms for you and your family. Our high customer satisfaction ratings reflect our commitment to clear, impartial guidance.
Frequently Asked Questions (FAQs)
Does company PMI cover pre-existing conditions?
Generally, no. Most company schemes operate on a 'moratorium' basis, meaning they exclude conditions you've had in the 5 years before joining. The main exception is a 'Medical History Disregarded' (MHD) scheme, which is a premium benefit offered by some large corporations. Always check the underwriting terms of your specific scheme.
Do I have to pay tax on my company health insurance?
Yes. Company-paid private medical insurance is considered a 'benefit in kind' by HMRC. The value of the premium your employer pays is treated as taxable income. The additional tax is typically collected by HMRC adjusting your tax code, so it's deducted from your monthly salary.
Can I add my family to my company's PMI scheme?
Yes, most schemes allow you to add your spouse, partner, and dependent children. Your employer will usually only pay the premium for you, the employee. You will have to pay the additional premium for your family members, which is typically deducted from your gross salary. This is often still cheaper than a standalone family policy.
What is better: a company scheme or an individual policy?
It depends. A company scheme, especially one with 'Medical History Disregarded' underwriting, often provides more comprehensive cover for a lower effective cost than you could get as an individual. However, an individual policy gives you complete control over your choice of insurer and cover level. If your company scheme is very basic, a more robust individual policy might be a better option for you.
Ready to explore your private health insurance options? Whether you need help understanding your company scheme or want to find the best individual policy, the WeCovr team is here to guide you.
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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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!