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Wanting to offer some medical benefits to staff at work and not sure what to choose from between cash plan or PMI. Our team can help break it down into what each offer and which suits your needs best. Both offer extremely valuable benefit so either is really a good option so let’s explore both.
Private medical insurance
Private Medical Insurance is a type of health insurance that helps cover the cost of eligible private healthcare. It can give employees access to private hospitals, consultants, diagnostic tests and treatment, often with shorter waiting times than they may experience through the NHS. PMI is generally designed to cover new medical conditions that arise after the policy starts. Pre-existing conditions are not usually covered, although the exact position depends on the insurer and the type of medical underwriting used. For businesses, PMI can be offered as an employee benefit, with the employer paying the premium on behalf of their employees.
What is cash plan
A health cash plan is a type of health benefit that helps employees claim money back towards everyday healthcare costs. Unlike private medical insurance, it is generally designed to help with routine healthcare expenses, rather than covering the cost of private hospital treatment for major illnesses or conditions.
Depending on the plan, employees may be able to claim towards:
- Dental treatment and check-ups
- Optical costs, including glasses or contact lenses
- physiotherapy and other therapies
- Health screenings
- Prescriptions
- Hearing tests and aids
- Mental health support, depending on the provider
Cash plans are generally less expensive than PMI, making them a popular option for businesses looking to offer a healthcare benefit at a lower cost. As a rough guide, basic workplace cash plans can start from around £5–£15 per employee per month, although the price will depend on the provider, level of benefits and number of employees.
The key difference: PMI is primarily designed to help cover the cost of private medical treatment, while a cash plan helps employees with the cost of everyday healthcare.
What’s best for your business
Both Private Medical Insurance and Health Cash Plans can be valuable employee benefits, but the right option will depend on your business’s goals, workforce and budget.
PMI may be the better choice if you want to:
- Give employees access to private medical treatment and specialist care.
- Help employees access diagnosis and treatment more quickly.
- Provide a more comprehensive healthcare benefit.
- Use healthcare benefits as part of your employee attraction and retention strategy.
A Health Cash Plan may be more suitable if you want to:
- Offer a more affordable healthcare benefit across your workforce.
- Help employees with everyday healthcare costs such as dental, optical and physiotherapy.
- Provide a benefit that employees can use regularly.
- Introduce healthcare benefits without the higher cost associated with PMI.
You don’t necessarily have to choose one. Some businesses offer both PMI and a Health Cash Plan, giving employees access to private medical treatment when they need it while also helping with everyday healthcare expenses. Ultimately, the right solution will depend on your budget, workforce, business objectives and the level of support you want to provide your employees.
If you’re unsure which option is right for your business, speaking to a broker who specialises in healthcare schemes can help. A specialist broker can compare the options available across the market, explain the differences between policies and help you find a solution that fits your business and your employees.
That’s where we can help. At Cransford, we specialise in private healthcare and can help you understand your options and find the right solution for your business.
How We Help at Cransford
At Cransford, we take a consultative approach, helping you design a healthcare strategy that fits your business, not a generic template.
We:
✔ Compare all leading UK insurers
✔ Design cost-effective benefit structures
✔ Provide clear, jargon-free advice
✔ Support implementation & ongoing management
You can learn more about our team and approach here
Get Expert Advice for Your Business
If you’re deciding between PMI and health cash plans, or considering combining both, we’d be happy to help.
Speak to Cransford today for expert advice and a free, no-obligation comparison
