This article is by Courtney Marsh, Chief Pricing and Underwriting Officer at BHSF, and it looks at how demand for healthcare cover in the workplace is increasing.
Private health insurers are grappling with sky-high claims in 2024 due to NHS backlogs and customers seeking alternative treatments. With the NHS waiting list reaching its peak in September 2023 at 7.7 million, only slightly falling to 7.6 million in December, accessible physical and mental health support has become crucial.
It has rapidly become an expectation that employers implement private healthcare into their benefit offerings, rather than a ‘nice to have’ perk. Employees are looking to their workplaces, now more than ever, to provide alternate care.
The shift toward employer-provided healthcare
Over half of the UK workforce consider access to healthcare through their workplace to be a crucial benefit, according to data from recruiter Robert Half’s Salary Guide. The Independent Healthcare Providers Network Survey 2023 also states that 25% of organisations already offer private healthcare, and an additional 20% plan to introduce it this year. Health insurance has also become a key factor for 57% of job seekers when choosing employment, with this rise in demand being largely driven by lengthy NHS appointment waiting times.
Private healthcare providers have the capability to grant employees access to virtual GP services, ensuring quick diagnoses and preventing issues from escalating. With health cash plans available on the market, covering dental, optical, and other medical costs, employees are also able to spread expenses over time at a lower rate. Considering that one in five employees were forced to take time off during 2023 due to poor mental wellbeing, access to licensed mental health therapists and counselling through private insurers is vital. Comprehensive private health insurance grants access to mental health services, combating the NHS backlog for non-urgent treatment like mental health support.
Benefits for employers and employees alike
Private medical insurance is no longer a ‘nice to have’; it’s an expectation for employers aiming to retain talent and stay competitive in the talent market. Offering healthcare benefits demonstrates authentic care, fosters a positive company culture, and contributes to a more productive workforce. Providing private healthcare also plays a vital role in reducing the rates of employee sickness leave, allowing workers access to medical care as and when needed and in turn reducing the chance that employees must take time off work to recover. Hence, as the demand for accessible care rises, so too does the need for medical professionals who can deliver flexible, high-quality services—particularly those who work as a clinician within employer-sponsored healthcare programs. This shift not only supports employee wellness but also reinforces the infrastructure needed to sustain long-term workforce health.
Businesses across the UK often lack the skills, capacity and access to information about how to keep their employees healthy and in work. There is still work to be done to incentivise employers to support the health of their staff, despite the mutual benefits for both parties. Employers also report mixed experiences of finding and commissioning quality occupational health services, highlighting the increasing need for high-quality private healthcare providers on the market.
Implementing Employee Assistance Programmes (EAPs)
To ensure effective support, employers can consider comprehensive Employee Assistance Programmes (EAPs) tailored to the specific needs of the workplace. EAPs facilitate earlier intervention and better outcomes by providing swift access to services, bypassing lengthy NHS waiting times, and reducing sick leave. Quality, bespoke EAPs offer healthcare, mental health services, and financial support customised for each workplace, encompassing , debt advice, discount portals, benefits packages, counselling, and spousal and dependent support. Employers should seek EAPs specialising in comprehensive care to implement a well-rounded wellbeing initiative.
Regular communication and promotion of these services are also crucial to facilitate utilisation and ROI, ensuring that employees are aware of the benefits available to them. By fostering a supportive work environment that encourages employees to seek help, the risk of long-term
sickness due to unaddressed health concerns decrease. In today’s world of work, businesses have a responsibility to support their employees,
particularly if they want to stay competitive in the job market and retain their staff. Employees want more from their employers, and organisations must step up to the plate to accommodate this rising demand for private healthcare.
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