Why Employee Health Insurance Makes Business Sense: The Benefits Beyond Wellbeing

Private medical insurance is increasingly becoming a cornerstone of competitive employee benefits packages. Beyond attracting and retaining top talent, there are compelling reasons why employers should consider introducing health insurance - including significant tax advantages.

Supporting Your Team's Wellbeing

Employee health insurance provides your team with quick access to medical care when they need it most. This means:
- Reduced waiting times for treatment
- Access to specialists and private hospitals
- Faster diagnosis and recovery
- Virtual GP services and mental health support
- Coverage for family members (optional)

The Business Benefits

1. Reduced Absenteeism
Quick access to medical care means employees can get treatment faster, reducing long-term sickness absence and associated costs.

2. Enhanced Productivity
When employees know they have comprehensive health coverage, they're more likely to seek early intervention for health issues, preventing minor problems from becoming major ones.

3. Talent Attraction & Retention
Health insurance consistently ranks among the most valued employee benefits, helping you attract and retain key talent in a competitive market.

Tax Efficiency Advantages

From a tax perspective, employee health insurance offers several benefits:

- Premiums are treated as an allowable business expense, reducing your corporation tax bill
- Currently, businesses can deduct 100% of premiums from their taxable profits
- For a company paying 25% corporation tax, this effectively reduces the net cost of providing health insurance by a quarter

While employees do pay Benefit in Kind tax on health insurance, the tax efficiency for businesses often makes it possible to provide this valuable benefit at a lower net cost than many employers expect.

Making The Right Choice

When implementing health insurance, it's crucial to:

• Choose the right level of coverage for your workforce
• Understand all available options and cost-control measures
• Work with experienced brokers who can negotiate competitive rates
• Regular review your policy to ensure it remains competitive

Want to explore how health insurance could benefit your business?

The team at Enhanced Employee Benefits can help you navigate the options and find a solution that works for both your business and your employees. Contact them today for a no obligation quote. Contact Enhanced Employee Benefits

To discuss the tax impact of these decisions please call us on 01474 619 990 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to discuss your requirements.

Remember: Investing in employee health insurance isn't just about providing a benefit - it's about making a strategic investment in your workforce's wellbeing while taking advantage of tax efficiencies that make good business sense.