Engage Mutual has updated its employer-paid One Fund health cash plan (the plan is also available as an employee-paid plan, with six benefit levels and a £25 excess for all benefits), removing the excess on four of six treatment areas and introducing the option of a higher premium level (£25 a month) with an increased annual fund limit of £1,850. The available premium levels are now £10, £12, £14, £16, £18, £20 and £25 a month.
The four non-excessed benefits are health screening, counselling (provided through The Oakdale Group), complementary therapies (POCAH – physiotherapy, osteopathy, chiropractic, acupuncture, and homeopathy), and consultations and diagnostics. A £50 policy year excess (£10 more than previously) applies for dental and optical treatment.
One Fund uses an annual pot or fund (£650-£1,850, depending on the plan level), with just optical (£120-£400 a year) and health screening (also £120 to £400 a year) having their own limits. In other words, unlike most health cash plans, a customer could use their whole annual fund of £1,850 (on a top level plan) to pay for say consultations or dental treatment, rather than have each subject to a much lower individual limit.
Children are included (except for health screening and counselling) and partners can be added at extra cost at the employer’s discretion. Plans are available to UK residents aged 16 and over.
Despite the changes, pricing has been pegged at last year’s levels.
What They Say
Commercial sales manager David Castling said: “We have received great feedback on One Fund’s flexibility and excellent levels of dental benefit; however, some customers have raised concerns over the excess payable across each treatment area.
"Having considered this against the need to provide a commercial, sustainable product, we have removed the excess from all treatment areas, apart from dental and optical, which have increased by £10. A small reduction in overall fund size also helped ensure no increase in price.”
What We Say
"Scrapping the excess on four of the six benefits will be popular. However, the two that remain are on the most claimed benefits on cash plans. That said, this is a reasonable compromise to avoid having to raise prices. One Fund is different to most health cash plans in that, as its name implies, it creates a single annual fund for most benefits, rather than subject each to its own much smaller annual limit.
"Having a new higher premium option also gives more choice and those selecting a middle of the road solution will pay a bit more to get higher benefits than before."