Why health insurance is broken!

Traditionally private medical insurance was designed to complement the NHS not act as a replacement. This philosophy however, has now been lost over time.

With premiums for medical insurance increasing year on year at unsustainable levels, utilisation low on other health related products such as employee assistance programs and income protection rehabilitation, it easy to see how the UK health insurance market is broken.

Many companies offer a wide range of health related benefits to their staff yet where it is available, employees will automatically direct themselves through medical insurance as they are usually left to their own devices to find their treatment pathway. This has left many companies in a position where they are having to budget for large premium increases while seeing no return on investment.

By utilising an effective claims management service employees can be routed through to the most appropriate treatment provider, not affecting the employee experience but by simply changing the facilitator of claims payments. We are forecasting that for many clients, this approach will reduce private medical insurance spend by approximately 40% in year 1.

This blog post was written by Carl Chapman. For further enquiries please contact Damian Stancombe, Head of Workplace Health and Wealth.

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