Group medical insurance can give employees faster access to diagnosis, treatment and wider health support.
Supporting employees with their health may help reduce disruption and time away from work.
PMI can offer more than medical treatment, with services such as mental health support, virtual GPs and Direct Access Pathways.
Employers should make sure employees understand what their PMI includes and how to access it.
Looking to build an employee benefits package that makes a real impact? We’re here to help.
When an employee is waiting for a diagnosis or treatment, it can affect more than their health. It can also affect their ability to work, their colleagues and the wider business.
That’s particularly relevant in the UK, where pressure on NHS services and lengthy waiting times can make it harder for people to access the care they need when they need it.
For employers, this means there’s a wider conversation to have about private medical insurance (PMI). It isn’t just about what happens when someone becomes unwell. Used well, it can form part of a broader approach to employee health, wellbeing and the employee experience.
How are health and productivity linked?
According to the WHO healthy workplace framework and model, health and work are closely connected.
When someone is dealing with an illness or injury, they may need time away from work. Even when they continue working, ongoing symptoms, appointments or uncertainty while waiting for treatment can make it harder to focus and perform at their best.
Delays can be particularly difficult when someone is waiting for a diagnosis or treatment that could help them return to normal day-to-day life.
Mental health matters too. Stress, anxiety and other mental health concerns can affect concentration, energy and performance, as well as contributing to absence.
Of course, good health doesn’t automatically mean higher productivity. But giving employees access to appropriate support can help remove some of the health-related barriers that can get in the way of work.
How can group medical insurance support employees?
Group medical insurance can give employees access to a range of healthcare services that may help them get support when they need it.
Exactly what’s included will depend on the insurer and the scheme, but this can include much more than hospital treatment.
Access to diagnosis and treatment
PMI can provide access to private diagnosis and treatment, helping employees get the care they need.
For someone who’s waiting for an appointment or treatment, having another route to healthcare can make a real difference to their experience.
It may also help them return to work sooner, depending on their condition and the treatment they receive.
Virtual GP and mental health support
Many schemes now include additional services alongside traditional medical cover.
This can include virtual GP services and mental health support, giving employees another way to access help without necessarily needing to arrange an in-person appointment.
These services can be particularly useful for employees who need support with an everyday health concern or are looking for help before an issue becomes more difficult to manage.
Direct Access Pathways
Some insurers offer Direct Access Pathways for conditions such as musculoskeletal (MSK) issues, cancer and mental health.
These can allow employees to access immediate support without needing a GP referral first.
This can make it easier for employees to get the right support at an earlier stage, although the services and eligibility requirements will vary between insurers.
Health rewards and everyday benefits
The value of PMI isn’t necessarily limited to times when an employee is ill.
Some schemes offer gym discounts and other health-related rewards that can encourage employees to take a more active approach to their health.
Dental and optical reimbursement benefits can also help with everyday healthcare costs, depending on the cover selected.
Support for specific health conditions
The range of support available through PMI has also expanded.
Depending on the insurer, employees may have access to services such as neurodiversity support, menopause support and medication review services.
These types of services can provide advice and support for areas of health that haven’t historically received the same level of attention within private healthcare.
The exact services available will vary between insurers, so employers should look beyond the headline benefits when comparing schemes.
What could this mean for your business?
The potential value of PMI goes beyond the policy itself.
If employees can access diagnosis and treatment more easily, it may help reduce the amount of time they need to spend away from work. It can also provide support while they’re dealing with health concerns, rather than leaving them to navigate everything alone.
There are several potential benefits for employers:
- Less disruption: supporting employees through treatment may help reduce the impact of health issues on working time.
- Employee wellbeing:access to healthcare can give employees greater reassurance and support when they need it.
- Recruitment and retention: healthcare benefits can form an important part of an overall employee benefits package.
- Employee experience: making healthcare support easier to access can show employees that their health is taken seriously.
The impact will vary between businesses and employees. PMI shouldn’t be viewed as a guaranteed way to increase productivity, but it can be one part of a wider strategy to support a healthy and engaged workforce.
What are the common challenges for employers?
Having PMI in place doesn’t automatically mean employees will use it effectively.
One of the biggest challenges is awareness. Employees may not know what their policy includes, how to access support or which services are available to them.
This can be particularly relevant as modern PMI schemes offer much more than traditional medical treatment.
There’s also the question of measurement.
It can be difficult to put a precise figure on the business impact of employee health insurance. For example, if an employee uses a virtual GP service instead of taking time out for an appointment, the benefit might be relatively small on its own. Across a larger workforce, however, these small differences can add up.
PMI can also sometimes be viewed as a ‘nice to have’ rather than an important part of the overall benefits strategy.
That’s why employers should think about what they’re trying to achieve with their scheme and how they’ll measure whether it’s delivering value.
What should employers consider?
If you already provide PMI, it’s worth taking a step back and looking at how well it’s working for your workforce.
Start by asking whether the current cover reflects what your employees actually need. Employee demographics, health trends and expectations around benefits can all change over time.
Communication is just as important. Employees need to understand what’s available, how they can access it and when they should use it. Simply including a benefit in an employee handbook isn’t always enough.
PMI should also sit alongside your wider wellbeing strategy rather than operating separately from it.
For example, you could look at how your healthcare benefits work alongside mental health support, absence management, employee assistance programmes and other wellbeing initiatives.
Learning from other employers
Looking at how other businesses use PMI can also be useful.
For example, our work with Berry Bros. & Rudd shows how a tailored approach to employee benefits can actively support workforce wellbeing and help employers put practical, people-focused health strategies into action.
As a result, Berry Bros. & Rudd received industry recognition for their transformative employee benefits strategy and their focus on delivering preventative health and wellbeing solutions to their people at the Employee Benefits Awards in 2024.
Why is this becoming more relevant in the UK?
The way people think about employee health benefits is changing.
Pressure on NHS services remains an important consideration for employers and employees. At the same time, employees are increasingly looking at the support available to them as part of the overall employment package.
There’s also greater awareness of the relationship between physical health, mental health and work.
That means employers have an opportunity to look beyond the traditional role of PMI.
The question isn’t simply, ‘Does this policy cover private medical treatment?’
It’s also, ‘How can this benefit help our people access support, and how does it fit into the wider way we look after our workforce?’
What’s the wider value of group medical insurance?
PMI is ultimately there to provide access to healthcare. But its potential value can go beyond the treatment itself.
Helping employees access diagnosis, treatment and support may reduce disruption, support their wellbeing and contribute to a better employee experience.
For employers, the key is making sure the scheme is right for the workforce and that employees actually understand how to use it.
That means reviewing the cover regularly, communicating it clearly and looking at PMI as part of the wider employee benefits and wellbeing strategy.
Talk to Howden Employee Benefits about reviewing your current provision and exploring how your healthcare benefits could better support your workforce.
Howden Employee Benefits & Wellbeing Limited is part of the Howden Group. Registered in England and Wales under company number 2248238, with its registered office at One Creechurch Place, London EC3A 5AF. Authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 312841). The Financial Services Register can be accessed through www.fca.org.uk
