Corporate healthcare costs are rising at 6% per annum, and increasingly companies are attempting to ...
Corporate healthcare costs are rising at 6% per annum, and increasingly companies are attempting to reduce costs through introducing an excess, according to a survey by Aon Health Solutions.
Almost half of the 684 responding companies said they had seen over 6% inflation, with 17% of companies paying between £251 to £300 per head for their cover.
The majority of respondents operated comprehensive private medical insurance (PMI) benefits, insured and administered by a UK medical insurer, with 36% imposing an excess, typically between £51 and £100. This figure is 9% up on 1998. Some 45% of companies operated claims-related plans.
Adrian Fisher, Aon's executive director, consulting services, said: 'Employers tend to perceive healthcare benefits as valuable, despite the increasing costs. The majority of the employers we surveyed said their primary motive for purchasing PMI is to get their staff back to work quickly ' but the value of PMI as part of an overall benefits package is increasing. This may be the result of public disillusionment with NHS services ' fewer than 10% of our respondents expected NHS waiting lists to improve, while 28% expected them to get worse.'
The percentage of employers who insure more than half of their workforce was 33.9% ' up from 32.1% in 1999/2000. The survey found that over 30% of companies have remained with their insurer for seven years or more, with 'competitive rates' being the main motivation for changing insurer, or for maintaining an existing relationship.
