The Financial Conduct Authority (FCA) is planning to introduce an excess payment for staff who use its private medical insurance (PMI) cover after soaring premium costs.
The regulator said premiums for the policy had almost doubled in the last five years, but headcount had only risen by 22%, suggesting usage and medical inflation had grown rapidly.
A major hiring round is also underway which will see the number of people covered increase and would further add to the cost of the scheme.
All staff are covered by the benefit from day one and it is also available for close dependants and partners, but at present no excess is paid by anyone.
Therefore, the FCA is proposing that lower grade employees pay a £100 excess per year with higher grade staff paying £200.
The plans, which would activate next summer, were published in an internal consultation considering a major overhaul of the FCA’s pay grades and benefit structure.
“To ensure we can continue to offer this benefit, which we know colleagues value highly, we need to ensure value for money given premium costs have almost doubled over the last five years, while headcount has risen by only 22%,” the FCA said.
“We propose introducing an excess payment of £100 for those in professional support roles and junior associates in order to access treatment, per person insured.
“The excess payment will be £200 for all colleagues at associate level and above, per person insured.”
The FCA highlighted that the excesses would be payable just once a year if someone needed to access medical treatment and multiple claims can be made with no additional excess required.
