The need for shared risk plans
Many businesses feel they neither need nor can afford a private medical insurance covering virtually everything. They are wary of choosing a limited risk, wanting to protect some treatments that a limited cover policy does not, or not cover treatments which a limited risk cover does. It is all about personal choice.
Most private medical insurance policies have an excess, the amount of the claim that you pay yourself. The first solution is to see if your insurer will reduce the costs if the excess is increased. The amounts on offer vary, but can be up to £1000.
An alternative is to select a High Excess policy which only offers a high excess. Typically the excesses on offer are £2500, £5000, and £10000. Some policies limit the total amount you could be asked to pay in one year.
There are no business High Excess policies, but some package or choice of cover policies will offer excesses anywhere between £50 and £5000.
Businesses should think very seriously before accepting a high excess .The excess may apply to each person insured .Can your business self fund the excess if one or more people need treatment in the same year? With self employed people or small businesses relying on one or two key individuals, it is probable that business earnings will drop during their absence These high excesses are really aimed at the corporate market , companies insuring over 100 individuals.
Another alternative is a Shared Responsibility cover. You pay a percentage of the treatment costs yourself. Typically this can be between 25% and 75% of costs. The more you pay, the lower the premium. Usually there is a £ limit on how much you can be expected to pay in one year
At present there is only one insurer offering the shared risk concept on business insurance