A fifth, new option has been added by Simplyhealth to its company-paid health cash plan, which is called Simply Cash Plan.
The new option is called PMI Excess Cover and is designed to pay out if the insured employee has to pay an excess under their private medical insurance (PMI) benefit. Three levels of cover are offered:
- Level 1 pays up to £100 a year and costs 25p per employee per week.
- Level 2 costs 50p a week for £200 of annual cover.
- Level 3 costs 75p a week for £300 of annual cover.
In effect, if an employee claims on their PMI policy and has to pay the full excess more than once every four years, the benefit will pay for itself.
The new module is another option that can be chosen on the Simply Cash Plan. That plan includes:
- The core plan costs £1 a week per employee and covers dental, optical, health screening, alternative therapies and consultations and scans. Helplines are also included. To this can now be added one or more of five options:
- Choice 1 is a 15p a week employee assistance programme (EAP) option.
- Choice 2 is a 30p a week Hospital and accident benefit option.
- Choice 3 is a 20p a week New-child payment option.
- Choice 4 is a 25p a week Managing Absence benefit option.
- Choice 5 is the new PMI excess benefit option.
If all options are chosen, the plan would cost £2.65 a week per employee if all options were chosen at the highest level available.
What They Say
Head of employer marketing, Howard Hughes, said: “Over the past 12 months we have seen an increase in demand for cash plans to cover PMI excesses. In response to this we have developed a new module to sit alongside the other paid modules we offer on Simply Cash Plan. This module will provide greater choice and flexibility for employers, while providing clarity on how Simplyhealth pays PMI excess claims.”
What We Say
"To some extent, choosing this option is a simple trade off – if the saving to be had by having a matching excess on PMI cover exceeds the premium charged for this option, an organisation will save money by choosing it. Looked at more widely, a good case can be made to have a low cost cash plan with some or all of the options now available, either as a standalone benefit or as an add-on to PMI that makes the overall benefits provided wider, more regularly accessed and perhaps clearer value to the employee. Of the options available, Choice 3 looks to be the least valuable to most people."