What’s the difference between health insurance and health cash plans?
As part of the new working world, employers across the globe have stepped up the healthcare benefits that they offer to their employees.
Looking after the health of your staff has shown amazing business benefits, including boosted morale, enhanced productivity and increased efficiencies. But what’s the difference between health insurance and health cash plans? And which is better for your business?
What is health insurance?
Health insurance is a type of cover that helps to pay for all, or part of medical expenses. Typically, health insurance policies are designed to pay for out-patient and in-patient private medical treatments and any other diagnostic procedures. Your staff won’t have to wait months for treatment on the NHS, they can rest assured knowing they can get a private bed irrespective of cost.
Should an individual get ill, they are given peace of mind knowing that they will be able to access the best treatment with less of a financial burden being put on themselves or family members. Many businesses offer health insurance cover as an employee benefit, this offers great value to members of staff because they know they’re in safe hands should they ever need treatment.
What is a health cash plan?
Health cash plans are another popular employee benefit provided by employers that allow their staff to claim back the costs of everyday healthcare. These can include GP appointments, dental or optical check ups, physiotherapy, counselling, an overnight stay in hospital and more, subject to the health cash plan provider.
The biggest benefit of a health cash plan is that it covers more of those everyday costs that your employees quite often avoid. Introducing this benefit takes a preventative measure, encouraging your staff to take control of their own health and seek support without the worry of cost. The business benefit to this? You’re likely to see less absence, a more energised team and therefore, increased productivity.
Other business benefits of a health cash plan include:
Shows you value your staff
All workers want to put more effort into a company that makes them feel valued and appreciates their hard work. Offering benefits such as a health cash plan shows you have their health and wellbeing at heart, motivating them to perform to a high standard.
Improves mental and physical health
A healthy workforce is beneficial in not only reducing absences, but also boosting productivity and creating an overall happier work environment. Over the last decade, the mental health of employees has become more and more important. Just as with their physical health, employees need to have the right support on hand. Many health cash plans include counselling and therapy as part of their package, an invaluable service for your staff to have access to. Some health cash plans include additional benefits such as discounted gym memberships, access to fitness trackers and wellbeing portals, all of which are good for both the mind and physical health.
When staff feel valued, they are more likely to stay in a specific role, which helps to save on recruitment costs. Investing money in employee benefits will not only help retain your high-performing staff but will also attract expert talent. When looking to find a new job, many people will often also look at the benefits a company offers and this may be why they choose one company over another.