Alternative to private medical insurance set to turn industry on its head

The provision of private health cover is a valued employee benefit. But for many companies private medical insurance (PMI) has become too expensive and the service too inflexible. YourHealth Plus has launched The Corporate Health Fund, which could change the face of private healthcare funding. Companies no longer have to pay for expensive PMI premiums from which they may never benefit. The Fund can save companies money and offers potential P11D tax benefits for employees.

The Corporate Health Fund operates as a medical savings account into which a company pays a fixed amount and on which they earn interest. Employees are covered for medical treatment in the same way as PMI, with a pre-agreed proportion of treatment costs paid from the fund - if treatment is needed. Any unused balance is carried forward to offset next yearís fund payment. Paying out yearly for insurance premiums that are not used and have no bearing on claims history is a thing of the past.

To ensure there are no unpleasant surprises such as excessive treatment costs for one individual or where aggregate costs for the workforce are higher than expected, there is a safety net insurance. Known as ístop loss insuranceí, this kicks in at a level agreed when the fund is set up.