One in ten employers are definitely considering introducing private medical insurance (PMI) however rising costs are proving prohibitive to those already with plans in place.
Research from Broadstone also found the proportion of organisations it quizzed with PMI had dropped in the last two years.
The consultant’s second UK Employee Benefits landscape report surveyed 200 organisations and found 11% were definitely considering introducing PMI, up from 9% in 2023.
Those considering it increasing from 15% to 20%, while those with no PMI plans on the horizon fell from 74% to 68%.
However, there was a drop in employers providing PMI from 85% in 2023 to 80% in 2025.
According to the findings, PMI remained highly valued as NHS pressures rise, and four in five survey respondents offered it.
The report found many employers who provided company-funded PMI had seen premiums rise in recent years, prompting some to consider whether they can afford to continue funding the benefits.
The most common excess level remained £100, though it declined overall from 36% in 2023 to 32%.
Meanwhile, a quarter of employers offered a nil excess plan compared to 17% in 2023. Smaller excess options, such as £50 and £125, appeared for the first time in the 2025 survey, which indicateed a broader variety is on offer.
There has also been a shift in the level of benefit provided – 51% of respondents (up from 45% in 2023) offered unlimited outpatient cover, suggesting a growing preference to offer more comprehensive medical benefits where these were highly valued by sought-after employees.
