Employers are calling for a new type of health benefit, a “middle ground” that offers a flexible and affordable hybrid between cash plans and PMI.
Speaking at panel discussion at the Benefits Expert Summit Hiscox head of global benefits and wellbeing Paul Johnstone, ABI assistant director and head of health and protection Rebecca Ward and Beauparc grop reward manager Sarah Bailey explored how rising costs and shifting employee expectations are driving demand for more flexible, integrated health benefits that bridge the gap between cash plans and PMI.
Johnstone explained that rising costs of health benefits are putting pressure on both employers and employees, emphasising that as prices increase, both sides need to see tangible value from these offerings.
He said: “The cost of these benefits are just being driven up and up. For employers to get the most value, they need to consider ceilings on them. Equally, because employees pay tax on any benefit, they need to see value as well.”
Ward highlighted that workforce health is no longer a perk but a core factor in productivity and retention. She noted: “I think it was perceived as a perk previously. It’s increasingly being seen as a core part of productivity. Employees increasingly see that there needs to be something available to recruit and retain staff.”
Meanwhile, the government recognises that economic inactivity due to ill health is a huge challenge, Ward added, with key themes emerging such as partnership between government and businesses, prevention, early intervention and better data on what works.
Bailey noted that employers are seeking “middle-ground” options between traditional PMI and cash plans to balance coverage and cost. She added: “Employers are starting to realise the value of having cash plans and PMI. Employers are asking if there’s a case for a PMI light or a cash plan in between, because PMI isn’t eligible for everyone and can be expensive. There’s a need for a middle ground.”
Johnstone explained that health benefit offerings also depend on employee role and tenure and how organisations adapt access to them to ensure employees receive the right support. He said: “It depends on the organisation. In financial services, a wide proportion of employees are entitled to private medical insurance. For others, we provide access to a healthcare account. There’s room to adapt and provide wider access while balancing value.”
Bailey emphasised that promotion and awareness are critical to ensure employees actually use their benefits, noting that engagement initiatives like champions and roadshows help maximise uptake.
She noted: “Dental is the most used benefit and everyone’s crying out for it. We try to promote benefits through word of mouth, roadshows, and rebranding efforts. Having champions or advocates helps employees use benefits more effectively.”
Ward explained that supporting employees effectively requires a focus on the individual. She said that personalised guidance helps them navigate multiple offerings like PMI and cash plans to address their needs.
Ward added: “It’s about centering support on the individual. PMI and cash plans offer different things so integration helps employees navigate what’s available. Personalisation and individualisation are key.”
Johnstone highlighted that data plays a key role in shaping benefits strategy with tracking usage and outcomes informs which benefits deliver the most value. He said: “Data is the foundation for developing strategy and it helps define key benefits, guide communication, and drive better value for employees.”
Bailey noted that using data allows employers to engage providers effectively and tailor offerings to meet employee demand, emphasising that without data, both communication and provider engagement suffer.
She added: “Data is very important. Cash plan usage can be tracked monthly. PMI tends to show musculoskeletal issues. Data helps you go to providers to expand offerings and tailor benefits. Without data, you can’t help employees or communicate effectively with providers.”
