How to Make Your Company Health Insurance Policy More Cost Effective 

Private medical insurance can be a valuable part of an employee benefits package, helping businesses support their people while providing access to private healthcare. However, it can also become a significant business expense, particularly as healthcare costs and insurance premiums continue to rise. 

Unlike many other business costs, private medical insurance premiums can increase year after year, making it important to think about the long-term sustainability of your policy. Rather than simply accepting increasing premiums or reducing valuable benefits, there are ways to review your policy and make sure you’re getting the right balance between cost, cover and value. 

Why does cost control matter for health insurance? 

Private medical insurance is a long-term commitment, and for many businesses, the cost of providing healthcare to employees can increase at renewal. This makes it important to consider the sustainability of your policy when choosing your cover. A policy that works well for your business today needs to remain affordable and appropriate as your business grows and your employees’ needs change. 

Cost control doesn’t necessarily mean choosing the cheapest policy or removing benefits. Instead, it’s about understanding what you’re paying for, whether your current policy remains competitive and whether there are opportunities to make your cover more cost effective. 

Review your policy before renewal 

One of the simplest ways to manage the cost of your company health insurance is to review your policy before automatically accepting your renewal terms. 

Your business may have changed since the policy was originally arranged. You may have more or fewer employees, your workforce may have changed, or your priorities around employee benefits may have evolved. 

Before renewal, consider: 

• What are you currently paying? 

• How has the premium changed compared with previous years? 

• Has your number of employees changed? 

• Does your current level of cover still meet your employees’ needs? 

• Are there benefits that are no longer required or being used? 

• Has your wider employee benefits strategy changed? 

• Is your renewal price competitive? 

A renewal is an opportunity to step back and assess whether your current policy is still the right fit, rather than simply renewing for another year. 

Compare your policy with the wider market 

One of the most effective ways to understand whether you’re getting good value is to compare your existing policy with what’s available from other insurers. A market review can look at your current premium, cover and policy structure alongside alternative options. This can highlight whether there are more competitive premiums available, different policy structures that could work better for your business or opportunities to improve your existing terms. 

It’s important to remember that comparing the market isn’t simply about finding the cheapest quote. A lower premium may also come with differences in cover, excess, outpatient limits, hospital lists, treatment options or underwriting. The aim should be to understand what you’re getting for the premium you’re paying and whether another option provides better overall value for your business. 

Negotiate with your current insurer 

A market review doesn’t automatically mean you need to switch provider. 

If your existing insurer remains the best fit for your business, the information gathered from reviewing the wider market can provide an opportunity to negotiate your renewal terms. 

Depending on the circumstances, this could mean negotiating for: 

• A more competitive premium 

• Improved terms 

• Changes to your policy structure 

• Adjustments to your excess 

• Changes to your level of cover 

Having a clear understanding of what other providers are offering can help you make a more informed decision about whether your existing renewal represents good value. 

Review your level of cover 

Another way to make your policy more cost effective is to review whether your current level of cover is still appropriate. This doesn’t mean automatically reducing your benefits. Instead, consider whether the policy has been designed around the current needs of your workforce. 

For example, you may want to review your: 

• Excess 

• Outpatient limits 

• Hospital list 

• Treatment options 

• Underwriting 

• Additional benefits 

Small changes to the structure of a policy can affect the overall premium, but it’s important to consider how those changes could also affect the experience employees receive. The goal should be to find a balance between affordability and meaningful employee benefits. 

Make sure your policy reflects your current workforce 

Your business is constantly changing, and so is your health insurance policy. Changes in employee numbers, workforce demographics, business size and employee expectations can all influence whether your existing policy remains suitable. Regularly reviewing your policy helps ensure that you’re not continuing to pay for a structure that was designed around the needs of a different business. 

Consider your wider employee benefits package 

Your private medical insurance shouldn’t necessarily be looked at in isolation. It’s worth considering how it fits alongside your wider employee benefits package and whether there is any unnecessary duplication between the healthcare benefits you’re providing. 

Your benefits strategy may also have changed since your PMI policy was first arranged. Perhaps you’re looking to improve your overall benefits offering, attract and retain employees or provide more targeted healthcare support. Reviewing your PMI alongside your wider benefits strategy can help ensure you’re spending your budget in the areas that provide the most value to your employees and your business. 

Cost effective doesn’t always mean cheapest 

When looking at ways to reduce health insurance costs, it’s easy to focus on the lowest premium. However, the cheapest policy isn’t necessarily the most cost effective. 

A policy with a lower premium could have different levels of cover, higher excesses, more restricted hospital options or fewer benefits.  Instead, businesses should consider the overall value of their policy. The right policy should provide an appropriate level of cover for your employees while remaining financially sustainable for the business. 

How can Cransford help? 

As a specialist health insurance broker we can help you review your existing policy and understand what options are available across the wider market. This can include reviewing your current cover, approaching multiple insurers, comparing premiums and policy structures, negotiating with your existing provider and helping you decide whether staying with your current insurer or switching makes the most sense. 

The value of having us as a broker isn’t simply in finding another quote. It’s in understanding what those options mean for your business and helping you make an informed decision. 

Could your business be getting better value from its health insurance? 

If your company health insurance premium has increased, your renewal is approaching or you simply haven’t reviewed your policy for a while, it could be worth taking a closer look at what you’re currently paying. 

At Cransford, we specialise solely in private healthcare and can review your existing policy against the wider market to help you understand whether your current cover remains competitive and suitable for your business. 

From reviewing your cover and comparing alternative options to negotiating with your existing insurer, we’ll help you understand your options and identify opportunities to make your policy more cost effective without compromising the benefits that matter to your employees. 

Want to see if your current policy is still giving you good value? 

Book an appointment with our team and let us review your business health insurance. 

Or call us on 028 9073 5207