Private Medical Insurance For Business Owners & Directors

NHS waiting lists have never been longer. If you fall ill, private healthcare insurance can help you get treatment faster and return to work sooner. Minimizing the disruption to your life, business and finances.

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Graham Cox
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As a business owner, any time spent away from your work due to illness can lead to a significant loss of income.

An income protection policy can replace lost earnings whilst you're incapacitated. But to minimize business disruption, it's worth considering private medical insurance (PMI) as well.

With private healthcare, you can bypass NHS waiting lists, speed up your recovery, and give yourself the best chance of returning to work as soon as possible.

And whilst there are tax implications to consider, it's possible for your limited company to pay for a small business private healthcare plan, even if the only employee is you.

Read on to find out more...

How does private medical insurance (PMI) work?

Private medical insurance provides a business owner or designated employee with private healthcare for new treatable conditions like cancer, back problems, mental health issues, and many other acute conditions.

PMI doesn't cover emergency treatments or injuries. For those, you should still visit Accident & Emergency at an NHS hospital.

Chronic conditions, cosmetic surgery, allergies, addiction treatment, pregnancy and childbirth healthcare are also excluded.

Pre-existing conditions can sometimes be covered but usually not until at least two years have passed on the policy without reoccurrence or incident.

Can my limited company pay for my private medical insurance?

Yes, your business can purchase private medical insurance for yourself as a company director and/or your employees. However, you should be aware there are tax implications both for the business and the employee.

What are the tax implications of paying for private medical insurance through my limited company?

As a tax-deductible business expense, the cost of employee private health insurance reduces your corporation tax bill.

However, because HMRC considers PMI to be a P11D employee benefit-in-kind for the director or staff member insured, the monthly premium is considered to be additional pay. As a result, there are two further tax implications:

  1. Extra income tax is deducted accordingly from the employee's pay
  2. The business is liable for additional employer National Insurance contributions

Whether it's more tax-efficient for your business to pay for healthcare insurance instead of paying for it personally depends on your tax band, the level of cover required and other circustances.

If you're insure on the best option, we recommend you seek independent tax advise.

Can I get private healthcare insurance for my family?

Yes, even if you're paying for the healthcare policy through your business, many insurers allow you to add a spouse and children to the plan.

Some providers don't charge any extra to add cover for your children or they may only charge for the first child.

Further information on the rules and guidelines for medical treatment business expenses can be found on the gov.uk website.

Book a call back and save your most valuable business asset...time.

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What does private healthcare insurance cover?

Private healthcare insurance only covers diagnostics and treatments for acute and non-emergency medical conditions. These are typically short-term, treatable illnesses and injuries. Chronic and pre-existing conditions aren't covered.

For emergency treatment, you should still go to your nearest NHS Accident & Emergency department.

Each insurance provider has it's own policy definitions. Check them carefully to see the range of illnesses and illnesses covered before taking out a plan.

Treatment for cancer and if required, palliative care, is usually covered. As are back and other musculoskeletal problems and mental health conditions; two of the most common causes of employee absenteeism.

Most policies provide the usual tests, therapies, scans and procedures you'e expect:

  • MRI scans
  • CT scans
  • PET scans
  • Physiotherapy
  • Chemotherapy
  • Radiotherapy
  • Surgical procedures

All hospital in-patient and day-patient charges are paid in full by the insurer including:

  • Theatre fees
  • Accommodation
  • Meals
  • Nursing care
  • Surgical dressings
  • Pharmaceutical drugs

How much does Private Medical Insurance cost?

PMI premiums start from approximately £35 per month per individual and can exceed £100 a month, depending on circumstances. Premiums are usually renewed annually.

The price varies hugely depending on a whole range of factors. For the person insured, this includes:

  • age
  • weight
  • location
  • current health
  • medical history, including any pre-existing conditions
  • lifestyle choices such as smoking and alcohol consumption

The monthly premium payable is also affected by the policy options selected. See below for more details...

What are the policy options?

PMI providers offer a range of optional extras to customise your policy to your needs and preferences. If you're on a tight budget, you can also remove some unwanted services from the standard healthcare plan.

Optional extras include:

Optician and dental treatments - cover for routine dental treatments, dental injuries and eye-care expenses. Limits may apply to each type of treatment.

Acute mental health treatment - enhanced mental health cover if in-patient or day-patient mental health treatment is required.

GP referred consultations and diagnostic tests - see a specialist quicker with GP referred consultations and diagnostic tests for chronic conditions, as well as referrals for a range of conditions and therapies.

Hospital choices - some PMI providers give you a couple of options regarding your choice of hospitals or medical facility.

The first, and cheapest option, is to choose from a pre-selected shortlist of 4 or 5 local hospitals. You can select your preferred hospital at the point of claim.

Alternatively, you can choose from a potentially hundreds of private hospitals or medical treatment facilities across the country.

This option can give you the additional benefit of using a named referral from your GP for specialist treatment. The hospital shortlist only allows the use of an open (unnamed) referral.

Options to reduce your premium include:

Hybrid day patient or in-patient cover - save money by using the NHS for the in-patient and day-patient treatment, if available for your condition within the first six weeks.

Policy excess - Choose an excess from as little £50 per employee in any policy year.

Selected benefit reduction - remove some of the more obscuure treatments and procedures included as standard.

Reduce the level of out-patient cover - some providers allow reduced out-patient cover, usually at set limits.

Book a call back and save your most valuable business asset...time.

"Brilliant from start to finish. Graham managed to find a main high street lender who offered a brilliant rate. Would highly recommend."

Tracy Boyle - Google Business Review
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Boo a call back at time to suit you.
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Getting a PMI quote

If you'd like a tailored business PMI quote from household names like Axa, Aviva and Vitality, get in touch with an adviser at SEMH today.

Alternatively call us on 0117 205 0655 during our office hours of 9am - 5pm Monday - Friday.

We can advise on a range of private healthcare options to suit your budget and business needs and ensure you and your employees can return to health (and work!) as soon as possible.