The great resignation during the pandemic intensifying the war for talent, record NHS wait times and an ongoing cost of living crisis mean advisers are predicting insatiable employer cash plan demand is likely to continue in 2023.
The cost of living crisis and the dearth of dentists taking on NHS patients has meant some employees simply cannot afford dental care but they also continue to require treatment for musculoskeletal conditions developed during lockdowns and are struggling to access GP appointments.
Consequently, people are turning to their employers for support – meaning the humble cash plan is carrying an increasingly heavy load picking up the slack from an NHS in crisis.
Twice the number of enquiries
“There has been a great deal of change in the employer and employee relationship post-Covid as we saw the impact of the great resignation followed by the cost of living crisis,” Paul Shires commercial director at Health Shield, tells Health & Protection.
According to Shires, this means employers are increasingly recognising the need for employee benefits, especially around supporting mental health and engaging a new hybrid working model.
“There is an increasing trend of new companies looking at benefits and we receive twice the number of enquiries for new business compared to switched business – where people have a plan with a competitor,” Shires continues.
“The direct sales channel is a growing area and people are engaging with content around mental health and how a cash plan supports financial wellbeing as well as other benefits that may have previously been standalone offerings such as an employee assistance programme (EAP) and virtual GP.”
Charlie Cousins, owner of Hooray Health and Protection, is seeing a big increase in demand from organisations wanting to support, attract, and retain talented staff but do not have the means or large budget for a health insurance policy.
“Health cash plans are a fantastic, cost-effective, alternative and one that is becoming more desirable by the day,” Cousins tells Health & Protection.
“Virtual services, such as GP consultations, mental health support, online platforms and diagnosis data are extremely popular for providing the extra support to clients and giving them easy quick access to their healthcare needs.”
According to Cousins, cash plans are evolving to meet growing demand by expanding to a greater client pool with different ranges of pay grades.
Different levels of cover and inclusions make them more accessible for those on different budgets and constraints – and that growing demand is serving a customer base with increasingly evolving needs.
Menopause, dentists and mental health
Stephen Ellis, associate director at Prosperis, explains Health & Protection that in the post pandemic era, he is seeing more use of physiotherapy benefit as people return to the office from home working.
As momentum builds behind support for workplace menopause interventions across society, with the matter high on Parliament’s radar, this and other specialist and diverse support is proving an attractive addition.
Susie Morris, director of trust sales at Healix Health Services, says she is starting to see this reflected in cash plan design, with some of her clients recently opting to add men’s and women’s health benefits to their cash plan schemes.
But another hot topic in Parliament has been the dearth of dentists taking on NHS patients. And earlier this year, in the House, while admitting to using private healthcare, the PM refused to answer how long he had to wait for his last dentist appointment.
Indeed, Charlie MacEwan, corporate communications director at WPA, says NHS dentists are scarce as more dentists are transferring their patients to private treatment and individuals seek cover to help support unexpected costs.
But the lack of access to dentists on the NHS could also pose more serious health risks.
Sally Campbell, head of clinical development and mental health lead at Healix Health Services, tells Health & Protection there is “ample” evidence linking good dental health to reduced chances of cardiac complications, heart disease and good overall health.
“At the same time, the link between gut health and mental health is becoming more prominent as science progresses,” she adds.
“In a trust environment, it is vital that employers are able to bespoke benefits as the science develops and cash plans within a trust framework allow them the flexibility to do so.”
A starting point to fill NHS gaps
Though this is mostly positive, amid a cost of living crisis the humble cash plan is not without its problems, as Matthew Reed, founder and managing director of Equipsme, points out.
“The fundamental problem with cash plans is they still ask the people earning less to fork out more up front,” Reed says.
“Employees have to pay first, claim it back, and depending on the caps and limits on their plan, they face a real risk of only getting a fraction back.
“With Equipsme our aim was to create a middle ground between PMI and cash plans – real health insurance benefits and wellbeing services that are affordable for business of all sizes, so entire workforces could access consultant-led, top quality private diagnosis and even treatment without the need to pay first and claim back once treatment is authorised,” Reed added.
But it does provide a launch pad, according to Steve Herbert, wellbeing and benefits director at Partners&, who notes the lower price point of cashplans is a “more realistic” starting point for many businesses given the economic constraints of this year.
As Medicash sales and marketing director Paul Gambon maintains, it is possible the NHS will be unable to cover certain treatments in the future, warning that services such as ear syringing and hearing aids could be down to the individual to fund.
Indeed Premier Choice Healthcare sales director Darren Perkins notes some providers have added the option for ear wax removal following confirmation that this is no longer a core service provided by the NHS.
According to Stella Trussler, cash plan specialist at LEBC Group, the difficulty in accessing primary care services via NHS GPs is also having a “huge” impact on the necessity for implementing a cash plan.
Meanwhile, Neil McCallum, head of products and partnerships at Benenden, said the provider is seeing diagnostic benefits increasingly being added to cash plans.
Significant growth ahead
But in a world where it is now more likely that individuals fund their own treatment, Shelley Rowley, chief commercial officer at BHSF, reveals that in line with the wider marketplace, the firm has seen individual plans decline as they are perceived to be more as an employee benefit rather than something purchased individually.
“Individual plans do still make up over half of the market, so significant demand remains for those looking to enhance their personal healthcare beyond what their employer or the NHS provides,” she added.
But it’s not just the use of cash plans that needs to evolve as this also extends to the cash plan providers themselves.
Katie Wadey, chief product and commercial officer at Simplyhealth, says this is because customers are no longer looking for just health insurance or cash plans, they are looking for healthcare services, which actively engage with them.
“Healthcare providers will need to modify and change their business models to be service providers, the ones that don’t won’t be fit for purpose in the future,” she adds.
Though ultimately, however demand shifts, with the number of patients waiting for treatment through NHS England staying stubbornly high, backlogs will prove a key driver to increased demand for cash plans in future, .
As Paul Nugent, chief executive of Santé Group, points out: “This year will see significant growth again, certainly from the intermediary perspective.
“With our emphasis as an employee benefit consultancy business being on whole of workforce being covered, particularly for diversity and inclusion – implementing a cash plan as an SME is more affordable for those staff that ordinarily didn’t get the health or life insurance cover.
“The duty of care immediately increases as staff will have access to speedier diagnosis and cash back for everyday health expenses,” he concludes.
