Advantages of Corporate Healthcare Trusts

The cost of traditional insured schemes can easily rise by more than 10% year on year. This is driven partly by medical inflation and partly by the Insurance companies need to cover claims incurred, their costs, insurance premium tax and make a profit. Cost containment has become a pressing issue for many employers.

The Insurers costs mentioned above either do not apply to a Healthcare Trust (such as Insurance Premium Tax) or are significantly reduced.

Compared to an insurance scheme, overall savings when using a Trust may be in excess of 20%* each year. Costs also tend to become more predictable and stable as time progresses and trends emerge. This figure will of course vary depending on the size of the Trust and the Trust costs each year.

If you simply reimburse staff for medical expenses, you may run into P11D complications (benefit in kind declarations, for Inland Revenue purposes) as staff members who receive reimbursment would each have individual, varied amounts (possibly rising to thousands of pounds) on which they would be taxed, also you may not have the experience, expertise or staff time to manage the cost of the medical expenses properly and efficiently.