Enhancing Employee Benefits with a Medical Cash Plan

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Issue 6: Enhancing Employee Benefits with a Medical Cash Plan

As we have discussed in the previous issues of our A Thriving Workplace series, employee benefits can play a crucial role in attracting and retaining top talent. In the current economic climate, with the rising cost of living, offering valuable benefits at a relatively low cost can make a significant difference for both employers and employees. One such benefit that stands out is a Medical Cash Plan.

With a Medical Cash Plan, employers pay a set cost per employee. Employees are then able to claim back the costs of routine medical, dental and optical expenses up to set annual limits. It is becoming increasingly popular amongst employers for several reasons. Not only is it cost-effective, it’s easy to implement. Additionally, it can help reduce short-term absenteeism by enabling employees to access and pay for medical treatments or diagnostic tests privately, without facing long waiting times. In fact, according to market research conducted by a corporate adviser, more than 1.6 million employees are currently covered by corporate cash plans. This statistic underscores the growing recognition of the value and importance of such benefits in today’s competitive job market.

It can be argued that one of the key benefits of a Medical Cash Plan is its support for everyday healthcare needs. Employees can reclaim some or all of the expenses related to a predetermined list of private medical and wellness treatments, as well as regular and emergency dental and optical care, up to specified annual limits. Providers typically offer multiple plan options with different maximum cashback allowances, enabling employers to customise coverage within their financial constraints.

Additionally, Medical Cashplans often encompass various complementary services at no extra cost. These services are readily accessible and may include skin cancer screenings, discounts at retail outlets, and access to meditation and fitness programmes. These supplementary services enhance the overall value of the Medical Cash Plan for employees.

Another attractive aspect of Medical Cashplans is that employees’ children are typically covered at no additional cost, usually with benefits set at half the level provided to employees. This feature is especially valued by employees with young families, offering them peace of mind regarding their children’s healthcare needs. Additionally, employees often have the flexibility to increase their own cashback limits at their own expense, allowing for a more tailored level of coverage.

Another benefit to employers is the efficient processing and quick disbursement of claims, typically completed within a few days through a straightforward process of uploading invoice photos to an online portal or mobile app.

In the case of employer-sponsored insurance, employees are taxed on the premium cost at their marginal rate, usually 20% or 40%. However, given the affordability of the coverage, the actual out-of-pocket expenses for employees are generally much lower than the potential reimbursement amounts. Employers also have the opportunity to extend coverage to employees’ partners. This additional benefit can be funded by the employer or the employee through salary deductions.

So, why not elevate your employee benefits package by offering a Medical Cashplan today? By taking this step, you not only show your employees that their health and financial well-being are top priorities for you as their employer, but you can also boost morale, increase job satisfaction, and foster a positive work environment that promotes loyalty and engagement.

In today’s competitive talent market, providing this valuable benefit can set your company apart as an employer of choice. It can help attract top talent, retain current employees, and strengthen your employer brand, ultimately leading to the long-term success of your business. Don’t miss out on this opportunity to invest in your employees and secure the future of your company. Act now and consider offering Medical Cashplan to unlock these benefits for your organisation.

For more information or an informal chat to one of our Employee Benefit advisers contact us today on 0207 709 5560.