In the best of health

Providing private medical insurance (PMI) is one of the many benefits many larger corporations now offer to attract and retain staff.It is becoming almost a standard offering so many new employees now expect some level of private health care as part of their overall package.

However, it can also be useful for companies. Ensuring people have speedy access to medical care means they take less time off work when sick. According to figures from Laing & Buisson (based on 2003), over 4.6 million people are covered by company funded PMI schemes.

Providing private health care is an allowable business expense for companies that pay corporation tax.
However, directors and employees earning over £10,000 (including expenses) will have to pay tax and national insurance contributions on premiums paid on their behalf. Any payouts in respect of claims are, of course, tax-free. Medical check-ups and screening provided by an employer are tax free, as are eye care tests.

Most PMI providers will offer tiered schemes. The basic schemes will offer hospital care as an in-patient or out-patient for serious illness. Mid-tier policies will also offer diagnostic tests and medical treatment, while top-tier schemes will bring in perks such as free prescriptions, home nursing and dentistry. These schemes can usually be tailored for the number of employees in an organisation and adjusted for employees who work abroad..

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