Employees who suffer from a debilitating illness or injury need fast treatment. Without it, their working lives deteriorate and become less productive and eventually they may even have to leave employment.
But it is becoming increasingly difficult to access quick treatment from the NHS. Since 2019, the waiting list for treatment in England’s public health service has risen by a staggering 63% and now stands at more than seven million people.
The data also shows an alarming 188% increase in the number of patients who waited over a year for a consultant-led referral to treatment from September 2020 to September 2022.
This has consequences for everybody in the country and increases fears that should the worst happen they are no longer guaranteed a quality standard of care in good time.
But it is having a particularly damaging impact on employers. The number of economically inactive workers due to long-term sickness has increased by 25% since 2019 and now totals just less than 2.5 million people.
That is a vast chunk of potential labour that is unavailable because of ill-health.
Put into context, the latest ONS statistics suggest there were 30.8 million working days lost in 2021/22 due to work-related ill health such as stress and musculoskeletal disorders.
Employers add 6% more staff to Bupa plans
It is against this backdrop that private medical insurance (PMI) is enjoying a surge in demand – both from employers and their employees.
Survey data shows that PMI is by far the most popular company funded employee benefit after pensions.
In fact, the appetite for private healthcare is increasing to the extent that levels of self-funded private hospital treatment have shot up by 33% since 2019 according to data from the Public Healthcare Information Network (PHIN).
It indicates the growing business case for employers to invest in PMI – both to maintain a competitive edge in a tight labour market when it comes to attracting and retaining talent, and also to avoid sickness-induced labour shortages.
And it appears businesses are heeding this – Broadstone data shows that their Bupa company PMI customers increased the number of employees covered by 6% on average in 2022.
Innovation improving affordability
Innovation in the market is supporting this growth in demand by increasing affordability in what has traditionally been viewed as an expensive benefit.
For example, insurers are developing directional care pathways through which they are able to play an active role in guiding members to preferred consultant and clinic networks based on agreed standards of clinical practice, governance, and efficacy.
These plans can significantly reduce premium costs compared to traditional PMI and can be an economical way of extending coverage to those employees not currently protected by a PMI scheme.
There appears no sign of any easing in the pressures that the NHS is experiencing.
Employers who still don’t recognise how PMI can support their business and colleagues face significant issues in the months and years ahead as health becomes an increasingly vital commodity in the workplace.
Those that do take proactive steps to put these protections in place are likely to benefit from better talent, wellbeing and performance.