What are Health Cash Plans and why are more employers introducing them

Health cash plans give your employees the ability to simply claim back the costs of dental check-ups, fillings, eye tests, physiotherapy, prescriptions and much more, each year up to an agreed limit. A Health Cash Plan is aimed at helping employees receive preventative treatment, by helping them to claim money back for some of their family's everyday healthcare expenses.

Unlike many other insurance policies which cover employees for unforeseen events, employees can benefit from their Health Cash Plans throughout the year. Most policies will also let employees add children at no extra cost, which effectively makes it a family plan. Pre-existing conditions are also usually covered too! 
Employees will be able to submit a claim online or through the post. They’ll need to include copies of your receipts (after the treatment has been received and paid for) and any other documentation needed to support their claim. The providers will often pay the money directly back into their nominated bank account.

Most Health Cash Plans will offer additional support services, such as:

• Telephone counselling
• Employee Assistance Programmes
• 24/7 access to a video GP 
• Online Health Assessments
• Healthy product/services discounts

Health Cash Plans are different to private medical insurance and will often compliment existing arrangements. 

Health Cash Plans can be employer-paid or employee-paid (known as voluntary). However, employers will often need to have at least 250 employees before a voluntary scheme is available. If the employer does pay, then the employees will pay the tax on it, known as a 'benefit in kind'. So, if it costs £20 per month, and they’re on a 20% tax rate, that's £4 per month additional tax.

The level of cover provided, and other benefits will vary between insurers. Please refer to their terms and conditions. Any references to tax legislation were accurate as of March 2021, however, this may be different if this article is read at a later date. Health Cash Plans are annual policies and the premiums may rise and fall depending on the claims performance.