Health cash plan provider Orchard Healthcare has ceased trading.
Worcester Hospital Contributors Association (WHCA) which was trading as Orchard Healthcare, was originally formed in 1921 to provide funds to run hospitals in the Worcestershire area.
When the NHS was formed in 1948, its health cash plans were set up to help individuals to manage the costs of basic healthcare.
On its website Orchard Healthcare showed that on 3 November 2023 it held a special general meeting of the association to consider whether to dissolve the Association with effect from 31 December 2023 or “as soon as practicable thereafter”.
This point was passed with a majority vote by the members, in attendance, via proxy and via postal vote. Consequently, with effect from 31 December 2023 WHCA ceased trading.
Orchard Health added it would stop taking subscriptions after 30 November and outstanding claims would only be paid up until 24 March 2024.
It also told members that while it cannot recommend another cash plan provider, a similar provider, called Paycare had offered to discuss their products with members.
“Paycare offer similar (although not identical) insurance products to Orchard Healthcare’s,” Orchard Healthcare said.
“They also have a similar ethos to ours, being a not-for-profit organisation and offer a ‘Gold’ plan without an upper age limit or restrictions based on medical history.
“You should always check that any insurance product you buy is suitable for your needs and consult an independent adviser or broker if in doubt.”
Confirming the offer of support, Paycare revealed it has has been working in collaboration with leaders at Orchard Healthcare to ensure its members have the opportunity to receive continuity of healthcare cover following the vote to cease trading on 31 December.
Paycare added those with health cash plans through Orchard Healthcare will continue to have their outstanding claims paid until 24 March 2024, although no new subscriptions were taken after the vote to close on 30 November.
Elaborating on the support it is offering Orchard Healthcare, Paycare said it would be providing a suitable/ potential HCP alternative if customers wish to continue cover.
It said it was removing any age-related restrictions to ensure there were no barriers for any customer irrelevant of age as well as any associated waiting periods. It said it had also built a dedicated and private sign-up and ‘get-to-know’ process, accessible through various communication channels.
In terms of its collaboration with Orchard’s leadership, Paycare added it has been providing support to the firm’s chairperson and CEO, making relevant introductions to support them in the process, discussions with the regulators and supporting with customer communications.
It further pointed out regulators have approved the process and relationship to ensure no detrimental harm was caused to customers and welcomed the support for Orchard’s members.
Anthony Burns, CEO of Paycare, (pictured) said: “We were incredibly sad to hear that Orchard Healthcare was closing its doors after 100 years of trading.
“During this time it has provided funds to hospitals across Worcestershire, and then in 1948 when the NHS was formed, began providing health cash plans to help manage the cost of basic healthcare.
“Both Paycare and Orchard share a very similar ethos and we, along with our regulators, were committed to ensuring that given the current cost of living crisis, members wouldn’t be left without much-needed support with their healthcare costs.
“Which is why we’re pleased to be able to offer Orchard members a potential new home for their health cash plans and, for those wanting to move over to us, we’ve made the process of joining as smooth as possible.
“The health cash plan sector has always looked out for each other, and with our steep history dating back 150 years, we’ve made some fantastic relationships with fellow providers along the way.
“It’s important to the NHS and to ourselves and our families that we continue to put our healthcare needs first, and we’re thankful that we’re able to help Orchard and its customers to do so.”
