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Employers like idea of tax breaks for private medical insurance

Simplyhealth

55% of decision makers agree that all companies should be given tax breaks in order to provide its entire staff with medical insurance and lessen the burden on the NHS, according to research by healthcare provider Simplyhealth.

 

Howard Hughes for Simplyhealth comments: "Our research shows that 40% of organisations currently offer employees private medical insurance, however 46% of these businesses only provide it as a benefit to senior or middle management. Lower earners are at greater risk of long-term absence. With the NHS struggling to cope with restricted funding and with seemingly further cuts on the horizon, there is a real need for the government to encourage employers to take greater responsibility for employee health and wellbeing. Tax relief on healthcare benefits such as private medical insurance could be an effective way to help reduce the burden on the NHS and to help organisations to better manage sickness absence. Our findings confirm that there is appetite for a new approach to employee health and wellbeing. 52% of respondents whose businesses only offer private medical insurance to some employees stated that they would be more likely to provide a private medical insurance benefit to all employees if organisations received a tax break for those employees who are standard rate tax payers."

 

Dame Carol Black and David Frost's review into sickness absence, released in November strongly recommended that tax relief for lower earners be considered to help speed employee return to work. But it did not recommend tax relief on conventional existing private medical covers, but on a new suggestion for specialist cover helping employees back to work quicker. 

Private medical insurance news: 12 January 2012