Employer health insurance – UK business guide to choosing and buying a policy

Last checked and updated on 8 August 2022

If you are an employer in the UK, it is important to understand the different types of health insurance policies available to you. This guide will provide you with all the information you need to make an informed decision about purchasing healthcare insurance for your employees.

You will learn about the different types of policies available, who pays for them, and how much they cost. We will also recommend some of the leading providers in the industry so that you can get the most value for your money. Finally, we will answer some frequently asked questions about employer health insurance.

What is employer based health insurance?

Employer based health insurance is a type of insurance that is provided by an employer to their employees.

This can be done through a group policy, where the employer pays for the premium, or it can be offered as an employee benefit, where the employees pay for the premium themselves.

There are many different types of health insurance policies available to employers, so it is important to understand the different options before making a decision.

What do business health insurance policies typically include?

Most business health insurance policies will cover the cost of private medical treatment, as well as GP visits and prescriptions. Some policies will also cover the cost of dental treatment, optical care, and mental health support.

Some policies will also provide employees with access to a 24-hour helpline, which can be used for advice on a range of health and wellbeing issues.

Are employers obligated to provide health insurance?

No, there is no legal obligation for employers to provide health insurance to their employees in the UK. However, many employers choose to do so as it can be a valuable employee benefit.

What are the benefits of buying business healthcare insurance?

There are many benefits associated with purchasing healthcare insurance for your employees.

Perhaps the most obvious benefit is that it will help to keep your employees healthy, which can lead to increased productivity and reduced absences.

Healthcare insurance can also help to attract and retain good quality employees, as it is an attractive employee benefit.

Who pays for the insurance – the employer or the employees?

This will depend on the type of policy that you choose. If you opt for a group policy, the employer will usually pay for the premium. If you offer the policy as an employee benefit, the employees will usually pay for the premium themselves.

Employer health insurance costs explained

As a general rule of thumb, the cost of a policy might cost in the region of £10 to £100 per employee, per month.

The cost of employer health insurance will vary depending on a number of factors, such as the type of policy you choose and the number of employees you have. It is important to get quotes from a few different providers so that you can compare costs.

Features to look for when choosing a business health insurance policy

When choosing a healthcare insurance policy for your business, there are a few key features to look out for.

  • Firstly, you will need to decide whether you want a comprehensive policy that covers all types of treatment, or a more basic policy that only covers certain types of treatment.
  • You will also need to consider the excess, which is the amount you would need to pay towards any claims.
  • It is also worth checking what discounts are available, as some providers offer discounts for businesses with more than 50 employees.

How to make a claim

If you or one of your employees needs to make a claim, you will need to contact the provider and provide them with the relevant documentation. This is usually straightforward, but it is always worth checking with the provider in advance so that you know what is required.

5 leading health insurance providers compared

There are many different health insurance providers in the UK, so it can be difficult to know where to start. Here are some of the best providers in the industry:

  1. Bupa
  2. AXA PPP Healthcare
  3. Aviva
  4. Vitality
  5. Cigna

Bupa

Bupa is one of the UK’s leading healthcare providers, offering a comprehensive range of health insurance policies for both individuals and businesses. They have a wide network of hospitals and clinics across the country, so you can be sure that you will be able to find the treatment you need.

AXA PPP Healthcare

AXA PPP Healthcare is a leading UK provider of private medical insurance and healthcare services. They offer a comprehensive range of employer health insurance solutions, from small business health insurance plans to large corporate healthcare packages.

Aviva

Aviva is one of the leading health insurance providers in the United Kingdom. They offer a wide range of health insurance plans, including employer-sponsored health insurance plans.

Vitality

Vitality offer a range of comprehensive health insurance packages to businesses of all sizes, with cover options to suit every need and budget. Vitality also have a number of unique features that set them apart from other providers, such as their exclusive discounts and rewards program, which offers savings on a wide range of products and services.

Cigna

Cigna is a leading global health insurance company, with operations in 30 countries. In the UK, Cigna provides health insurance to both individuals and businesses. Cigna offers a range of health insurance plans, including private medical insurance, dental insurance, and travel insurance. For businesses, Cigna also offers group health insurance plans.

How to choose an employer health insurance provider

When you are trying to choose a health insurance provider, there are a few things you need to take into account.

  • Firstly, you need to decide what type of policy you want and what features are most important to you.
  • Once you have done this, you can start to compare prices and benefits.
  • It is also worth reading online reviews so that you can get an idea of the level of customer service offered by each provider.

FAQ

Do I need to offer health insurance to my employees?

No, there is no legal obligation for employers to provide health insurance to their employees in the UK. However, many employers choose to do so as it can be a valuable employee benefit.

How much does employer health insurance cost?

The cost of employer health insurance will vary depending on a number of factors, such as the type of policy you choose and the number of employees you have. It is important to get quotes from a few different providers so that you can compare costs.

What should I look for when choosing a business health insurance policy?

When choosing a healthcare insurance policy for your business, there are a few key features to look out for. Firstly, you will need to decide whether you want a comprehensive policy that covers all types of treatment, or a more basic policy that only covers certain types of treatment. You will also need to consider the excess, which is the amount you would need to pay towards any claims. It is also worth checking what discounts are available, as some providers offer discounts for businesses with more than 50 employees.

Who pays for the health insurance – the employer or the employees?

This will depend on the type of policy that you choose. If you opt for a group policy, the employer will usually pay for the premium. If you offer the policy as an employee benefit, the employees will usually pay for the premium themselves.

What are the best health insurance providers in the UK?

There are many different health insurance providers in the UK, so it can be difficult to know where to start. Here are some of the best providers in the industry:

Bupa
AXA PPP Healthcare
Vitality
Aviva
Cigna

What is the excess on a business health insurance policy?

The excess is the amount you would need to pay towards any claims. It is important to check the excess when choosing a policy, as this can vary significantly between different providers. Some policies also have a higher excess for certain types of treatment, such as cancer care.

Are there any discounts available for businesses with more than 50 employees?

Yes, some health insurance providers offer discounts for businesses with more than 50 employees. It is worth checking what discounts are available when comparing quotes.

How much does employer sponsored health insurance cost?

The cost of employer health insurance will vary depending on a number of factors, such as the type of policy you choose and the number of employees you have. It is important to get quotes from a few different providers so that you can compare costs.

How much does health insurance cost an employer per person?

The cost of health insurance will vary depending on the type of policy you choose and the number of employees you have. It is important to get quotes from a few different providers so that you can compare costs. Generally, the more employees you have, the lower the cost per person will be.

ⓘ Compare prices?

Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.