Is it worth joining my company's group medical insurance plan?

Deciding On Corporate Health Insurance

This depends on your employer’s scheme and the cost of joining the private health insurance plan.

Many employers offer private medical insurance (PMI) as a benefit to employees and their families. Depending on the specific policy, this can ensure that you – and your family if covered – have quick access to consultants and out-patient treatment as well as in-patient treatment in a private hospital or ward.

Depending on your employer, you may have to pay some or all of the monthly premium for joining such a scheme. Other employers offer this free of charge as an employee benefit.

If you are considering joining your company’s health insurance plan you should:

  • Compare the cost of joining. If you have to pay to join it may be cheaper for you to take out an individual private medical insurance policy. However, companies can often negotiate discounts from insurers and so you may find that it is cheaper to join your employer’s scheme, even if you have to pay
  • Find out whether it covers just you or your family as well
  • Consider the benefits offered under the scheme. Is it a comprehensive policy that includes all in-patient and out-patient treatment? If not, would you prefer to take out healthcare insurance that more suited your needs?
  • What is the ‘excess’ on your employer’s policy? How much of any claim do you have to pay yourself?
  • Bear in mind that if your employer pays for your private medical insurance then it is likely to be taxed as a ‘benefit in kind’. You will pay tax on the equivalent monetary value of the private medical insurance and have to declare this to HM Revenue and Customs on a P11d ‘benefits in kind’ form

For many people, joining their company’s private medical insurance scheme is a worthwhile course of action. This is particularly true if you don’t have to make a contribution towards membership – even if you have to pay tax on it as a ‘benefit in kind’.

Briggs & Butler are PMI specialists. If you want advice on the right private medical insurance for you, complete our online form today. We’ll connect you to a FSA registered broker who will discuss your healthcare insurance needs with you. They will then advise you on the right course of action – whether that is joining your employer’s healthcare insurance scheme or taking out a policy in your own name.

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