Businesses support PMI tax breaks for staff

The majority of employers agree with recommendations to introduce tax breaks for private medical insurance (PMI), a survey has found.

According to research by Simplyhealth, more than half (55%) of the HR professionals who responded agreed that all companies should be given tax breaks in order to provide their entire staff with medical insurance.

The survey also found that 52% of businesses that only offered PMI to some employees would be more likely to provide it to all staff if a tax break was available for standard rate taxpaying employees.

As COVER reported, the sickness absence review strongly recommended that tax relief for lower earners on PMI be considered to help speed employees return to work.

It also called for a new breed of rehabilitation only products to aid this goal.

Howard Hughes, head of employer marketing at 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.

"According to the independent review into sickness absence, 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 is an effective way to help reduce the burden on the NHS and to help organisations to better manage sickness absence," he added.