For many small business owners, providing private medical insurance (PMI) for employees may seem like an expensive additional cost. However, private medical insurance for small businesses can be more affordable than you might expect, offering valuable benefits for both employers and employees.
With NHS waiting times continuing to influence how people access healthcare, more UK businesses are considering private health insurance as part of their employee benefits package. For small and medium-sized businesses (SMEs), it can be an effective way to attract and retain talented employees while supporting the health and wellbeing of their workforce.
But how much does business health insurance actually cost, and is it a worthwhile investment for a smaller company?
How Much Does Private Medical Insurance Cost for a Small Business?
The cost of private medical insurance for businesses varies depending on several factors. These typically include:
- Number of employees: The size of your workforce and the number of people included on the policy.
- Age of employees: The average age of the workforce can influence premiums.
- Location: Where employees are based can affect the cost of cover.
- Level of cover: Different policies offer varying levels of inpatient, outpatient, diagnostic and specialist treatment.
- Additional benefits: Options such as mental health support, dental and optical cover, and family healthcare can influence the overall premium.
The good news is that small business health insurance can be tailored to suit different budgets, meaning you don’t necessarily need a large workforce or substantial benefits budget to provide private healthcare.
What Could Private Medical Insurance Cost Your Business?
To give you an idea of the potential costs, consider this example:
- A business with 10 employees and 9 additional family members based in Northamptonshire.
- Total monthly premium: £546.
- Equivalent cost: approximately £28 per person, per month.
This demonstrates how business private medical insurance can be an affordable employee benefit when the overall premium is shared across a workforce.
Of course, every business is different, and premiums will depend on the specific requirements and cover selected.
You can also explore our private medical insurance pricing guide to learn more about typical costs.
Why Is Business Health Insurance a Good Investment?
Private medical insurance is about more than simply providing employees with access to private healthcare. It can form an important part of a wider employee wellbeing and retention strategy.
For small businesses, where every member of staff plays an important role, supporting employee health can have a positive impact on the wider organisation.
Some of the key benefits include:
1. Supporting employee health and wellbeing
Private medical insurance can give employees access to eligible private consultations, diagnostic tests and treatment, subject to their policy terms. Having additional healthcare options can provide reassurance and help employees feel supported.
2. Helping to manage employee absence
Access to timely diagnosis and treatment may help some employees address health concerns sooner. This can potentially reduce the time spent waiting for treatment, although outcomes and recovery times will vary.
3. Improving staff retention
Employee benefits are an important consideration for many people when choosing an employer. Offering private healthcare can help your business stand out, demonstrate that you value your workforce and support staff retention.
4. Attracting new talent
Competition for skilled employees can be challenging for smaller businesses. A company private medical insurance scheme can make your employee benefits package more attractive, particularly when competing with larger organisations.
5. Supporting workplace productivity
When employees feel that their health and wellbeing are being prioritised, it can contribute to a more positive working environment. Providing access to private healthcare is one way to demonstrate that commitment.
Flexible Private Medical Insurance Options for SMEs
One of the biggest advantages of private medical insurance for small businesses is the flexibility available.
Whether you employ just a handful of people or have a growing team, there are different levels of business health insurance to consider.
Depending on the insurer and policy, options may include:
- Inpatient and day-patient treatment.
- Outpatient consultations and diagnostic tests.
- Cancer care cover.
- Mental health support.
- Physiotherapy and other therapies.
- Family and partner cover.
- Dental and optical benefits.
Not every business will need all these benefits. Choosing the right combination of cover is important to ensure your policy provides meaningful protection without exceeding your budget.
Why Use a Private Medical Insurance Broker?
With several insurers and different policy options available, comparing business health insurance can be confusing, particularly if you’re arranging cover for the first time.
This is where using a specialist private medical insurance broker can make a real difference.
At Medical Made Easy, we help businesses understand their options and explore suitable private medical insurance solutions.
Working with a broker can help you:
- Compare private medical insurance policies from different insurers.
- Understand the differences between levels of cover.
- Identify benefits that are relevant to your employees.
- Explore options that fit your business budget.
- Make a more informed decision about your company’s healthcare provision.
Rather than spending hours researching policies yourself, a broker can help simplify the process and guide you towards an appropriate solution.
Is Private Medical Insurance Worth It for a Small Business?
For many SMEs, private medical insurance can be a worthwhile investment, particularly when considered as part of a wider employee benefits strategy.
It provides an additional healthcare option for employees, can help strengthen your benefits package and demonstrates a commitment to looking after your team.
Importantly, you don’t have to assume that private healthcare is only accessible to large corporations. With flexible policies and different levels of cover available, smaller businesses can explore solutions that work for their circumstances and budget.
The key is finding the right policy rather than simply choosing the cheapest option.
Get an Affordable Private Medical Insurance Quote for Your Business
If you’re considering introducing private medical insurance for your employees, the best starting point is to explore what is available for your business.
At Medical Made Easy, we make comparing private medical insurance straightforward. Our team can help you understand the available options, compare suitable policies and find cover that meets your business requirements and budget.
Whether you’re a small business looking to introduce employee health insurance for the first time or an established company reviewing your existing policy, we’re here to help.
Contact Medical Made Easy today to discuss private medical insurance for your business and request a tailored quote.
Give your employees access to additional healthcare options while making a valuable investment in your workforce.