Given the value that cash plans can add to the employer and intermediary’s business, making the effort to educate colleagues is clearly well worth it.
1. Tangible benefit: real value for money and cash back when it is needed the most
2. Reduced PMI annual premium: cash plans can work alongside PMI to lower costs while adding another range of benefits to the healthcare package
3. Lucrative income stream: inclusivity and affordability means all the workforce can benefit and the plan can be provided for years to come
4. Treating Customers Fairly obligations: looking at cash plans for clients when reviewing their needs will help brokers meet their obligations
5. Underwriting: most cash plans are based on a community pricing strategy, so if a client has high claims in one year it should not mean increased premiums the next
Source: Westfield Health
A health cash plan can help employees to stay healthy every day by providing access to valuable services and cash benefits towards the cost of their routine healthcare.
Employees can claim money back towards essential health costs such as eyecare, dental treatment, physiotherapy, diagnostic consultations. They also have access to quality health and wellbeing services to complement the cash benefits.
CASH PLANS CAN:
Reduce absenteeism and related costs
Recruit and retain staff
Improve staff morale, motivation and productivity
Lower the risk of musculoskeletal litigation in conjunction with a robust stress policy and line manager training
Play an integral part of your clients’ health and safety policy
Provide a valuable employee benefit package
Encourage pro-active employee healthcare
Cash plan provider Westfield Health recently met a company with 180 employees in which 50 qualified for the PMI scheme but only 35 were actually members because of P11D costs. The intermediary said the company had to implement a £200 excess to control costs but did not mention cash plans or those employees without cover. According to Westfield, the estimated commission earnings on a PMI scheme of this size would be in the region of £1,000 to £1,500.
The employer was paying for eye tests via vouchers, employees were struggling to find a dentist, the company had significant sickness absence costs and the employer would pay for treatment to get people back to work if necessary.
Jill Davies, chief executive of Westfield Health, says: “When it was pointed out to the employer that they were already paying for many services included in a cash plan, that employees with PMI could also be covered by a health cash plan and that a cash plan could be used in pay negotiations, they recognised that it would cost them very little to implement and the potential savings would be very attractive.”
The intermediary’s additional cash plan commission earnings would be in the region of £1,000 – doubling the amount earned from the PMI scheme alone.