|
Insurance is a thorn in the side of many small businesses, but could they turn it to their advantage? Sometimes it feels like premiums will go on rising forever. Employers liability insurance has taken up column inches recently because of soaring costs, which hit small businesses disproportionately. But what about medical insurance? Is it just an expensive bit of fluff to entice better job candidates or can it make a real difference to the way businesses recruit and retain staff? BusinessEurope.com recently took part in a webchat Jo Clarke, chief executive of YourHealth Plus and Alan Grinnell, director of an independent health care benefits consultancy. Some of the responses are listed below. Q: "Why should SMEs invest in health insurance?"Alan Grinnell: "SMEs depend on a few key staff to run the business and should anyone of these key employees be unable to work through illness the company's productivity suffers." Q: "The insurance industry is a source of concern for small businesses because of rising premiums. Won't this continue to be a problem in future?"Alan Grinnell: "The increase in private medical insurance premiums rises on average about 5 times more than general inflation every year. The Health Fund [a product offered by YourHealth Plus] offers more stability over a three-year period. Q: "What can smaller business do to ease the burden of insurance costs?"Q: "Is it really worth offering employees healthcare - does it make a difference to your desirability as an employer?"Alan Grinnell: "It is worth offering private health care benefits to key employees at least. Partly because other companies in your industry will try to attract those employees with a stronger benefits package and of course you can minimize losses in productivity therefore, maximizing profits." Jo Clark: "There are companies that are known to me who are desperate to make the "best employers list" and fail to do so because they do not provide healthcare benefits. Of course we will be changing that for them very shortly." Q: "I'm considering offering my staff - 35 employees - either a contributory pension or healthcare; tell me why I should choose PHI over a pension, both in terms of benefits to the staff and to my business."Jo Clark: "Let's be honest, whilst private health care will be more beneficial in the short to medium term one should never forego contributions in to a pension fund." Q: "I run a local business forum for SMEs and the topic of private medical insurance (MPI) was covered at a recent lunch. However most of our members could see the benefits in principal but still baulk at the cost. How do you overcome this obvious disparity?"Alan Grinnell: "We are not surprised you are horrified by the increase in costs of medical insurance. This is why the Health Fund has been created for companies to offer access to private medical treatment but with out the inflationary costs associated with medical insurance. Q: "I'm not sure that my employees would buy into this. How would they be better off than having standard private health cover?"Alan Grinnell: The employees would have the advantage of tailor made benefits and lower P11D taxation. Jo Clark: The employees also have greater control and extended choice on when and where they are treated. They are not restricted on the hospital choice and the consultant can use the hospital that is best suited to the treatment needed. Q: "My current PMI are astronomical and with very little upside to my business. I for one wouldn't recommend it as part of an employee benefits package."I've switched to paying for gym membership for all staff on the basis that prevention is better than cure. I presume you'd disagree?" Alan Grinnell: It is a good idea to pay for gym membership and we are firm believers in prevention being better than cure. Indeed, we actively promote "wellness" in the work force through our Health Creation Scheme, which can be integrated into your corporate Health Fund. However, we must remember medical treatment can only be funded by the individual or company through self-funding or medical insurance.
| 
