How much does Company Health Insurance cost in the UK?

company health insurance cost

You probably already know that Company Health Insurance costs vary from case to case. That’s why we usually recommend getting in touch with our team of award-winning brokers to source FREE quotes tailored to your business.

Nonetheless, it’s always worth looking at indicative price ranges and understanding the factors which affect them. That’s exactly what you’ll learn from this blog post, plus you’ll get some bonus tips on how to keep premiums low.

Get FREE one-to-one advice and support by contacting our independent brokers on +44 (0)1273 974419 or via the chatbox on the right.


What is impacting your Company Health Insurance costs?

There is no one fixed cost for Company Health Insurance. However, it’s worth knowing which factors affect the price of a Business Health Insurance policy.

The cost of health insurance is affected by the following:

  • Age: the average age of staff included in the scheme and the ratio of young to old
  • Location: where the company is based geographically
  • Benefits selected: the benefits, and any added extras included in the plan
  • Claims: any previous claim history (if any) from previous insurer
  • Underwriting: the underwriting method selected at application of the scheme
  • Number of employees included: the more people included in a scheme, the lower the premium per person

How much does health insurance cost UK employers?

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Below we’ve provided some indicative costs of health insurance schemes in the UK*. These prices are based on new-to-market schemes (first time purchasers), comprehensive cover, home county locations and non-London hospitals.

Number of employees: 2-9

  • Average age 25: monthly cost per employee £28-£35
  • Average age 35: £31-£48
  • Average age 45: £42-£62
  • Average age 55: £61-£88

Number of employees: 10-29

  • Average age 25: £22-£30
  • Average age 35: £27-£45
  • Average age 45: £33-£52
  • Average age 55: £45-£69

Number of employees: 50+

  • Average age 25: £13-£22
  • Average age 35: £21-£35
  • Average age 45: £28-£44
  • Average age 55: £38-£58

*Premiums shown are based on numerous sources including Engage Health Group’s existing client base, company quotations issued, third party sources, example quotations via insurer portals and market averages. Other variables can apply and all figures shown are for indication only purposes.

Looking for advice on how to lower your Company Health Insurance premiums? Set up a FREE call or receive FREE quotes by emailing [email protected] or calling +44 (0)1273 974419.

8 ways to lower health insurance costs

It’s no secret that Business Health Insurance can be one of the most expensive (and most sought after) type of employee benefit. Thankfully, there are things you can do to lower the cost.

1. Raise the excess to lower the premium

The ‘excess’ is the amount you agree to pay towards an insurance claim. I.e. if you need to make a health insurance claim, you may choose to pay a pre-agreed amount towards the cost. The higher excess you pay, the lower the initial cost of the premium. Raising the excess could be a good option for businesses which have a lower likelihood of claims.

2.The Six-Week rule

When you apply the Six-Week rule it means that employees will only be seen privately if the NHS has not seen them within six weeks. In some cases, it’s been known to help reduce the company’s premium by 25%!

3.Set up an eligibility criteria

You can set criteria which decides which employees get access to the scheme. For example, an employee may need to be employed for a minimum period of time (such as six months) or it may apply to full-time workers only.

4.Pay annually

Depending on the insurer, some are known to offer discounts for annual payments, rather than monthly.

5.Enlist a broker’s help

Enlisting a broker ensures you locate the best Company Health Insurance policy for your needs. It’s not simply about discovering the lowest price, it’s about finding the best value. An AMII-accredited health insurance broker like Engage provides its services free of charge and will work in your best interests, rather than in the interests of an insurance provider.

6.Try out Health Cash Plans

A cheaper alternative to Business Health Insurance is a Health Cash Plan which focuses on the everyday health needs of your staff, such as physiotherapy, dental care, optical care and more.

Discover whether a Business Health Cash Plan is a good option for your business.

7.Reduce the level of cover

Most health insurance policies feature different tiers of coverage. Being selective with what is included in your plan is going to reduce costs. But will this strip away too much of its value to staff? This can be a tricky calculation to make and really depends on the needs of your business and its team members. Again, these are discussions we can help with.

8.Reduce added extras

Many insurers will offer extra add-ons to your policy, such as Employee Assistance Programmes and physiotherapy access – but cutting these down could help negotiate a lower price. Once again, it’s a case of calculating the money savings versus the value of benefits lost.

Further reading: 12 employee benefits designed to protect the health & wellbeing of your workforce


Seek out expert and obligation-free advice

Company Health Insurance costs vary greatly depending on the insurance provider, the nature of your business, and the size and demographics of the workforce covered. As one of the more expensive employee benefits products, it’s especially important to ensure that you get optimal value from it.

That’s why getting advice from independent professionals is always recommended. And as it comes at no extra cost to your business, there’s zero risk or downside.  At Engage Health Group, we go above and beyond to ensure that any health insurance scheme or employee benefit is the perfect fit for your business. We specialise in negotiating with insurance companies and finding the best quotes which aren’t publicly available, saving you and your HR teams the legwork.

We offer our expert support free of charge, sourcing tailored quotes and helping you implement your selected employee benefits across the workforce.

Contact us at [email protected] or call +44 (0)1273 974419 for FREE no-obligation advice and support.

 

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Eleanor Chilvers

Eleanor started at Engage in 2021, and is now a Digital Content Writer after studying BA English Literature at University of Sussex for the last 3 years.

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