Group private medical cover is becoming essential for SMEs

Despite recent efforts to reform services and cut waiting times, NHS waiting lists in England remain one of the biggest challenges to the UK health system.

• As of late 2025, around 7.3–7.4 million people were on the referral-to-treatment waiting list – spanning everything from orthopaedics to routine check-ups, with median waits over 13 weeks. Only about 62% of patients were seen within the NHS’s own 18-week standard, far below the target of 92%. [1]
• Even though the trajectory has sometimes dipped – such as April 2025’s waiting list being the lowest in two years – overall demand and delays remain striking and persistent. [2]
• Backlogs aren’t limited to surgical lists: accessing GP and dentist appointments can also be problematic, with many practices struggling to meet demand

For businesses and their employees, these delays aren’t just numbers, they represent stress, uncertainty and lost time when health issues go untreated.

Long waits for diagnosis or treatment don’t just affect a person’s wellbeing, they affect the workplace in a number of ways:

• Reduced productivity: employees waiting weeks (or months) for treatment may be less focused, more fatigued, or working through pain.
• Higher sickness absence: untreated conditions often worsen, leading to longer absences that cost employers more in lost productivity and cover.
• Recruitment and retention stress: job seekers increasingly value employers who demonstrate care for staff wellbeing – including access to timely healthcare.

Private insurance is on the rise to try meet these gaps. UK workplace medical claims reached record highs in 2024, driven in part by NHS limits on timely care, with employers and employees turning to their employer and private schemes for support. [3]

Private medical insurance (PMI) in the UK doesn’t replace the NHS, it runs alongside it. For example, PMI doesn’t typically cover emergency A&E care and the NHS remains the first port of call for urgent health needs.

But what PMI does provide is covering costs when eligible for private care and giving access to:

• Faster appointments with specialists and consultants
• Quicker diagnostics and treatment for non-urgent conditions
• Flexibility to choose where and when you’re seen
• Coverage for many consultations, tests, and hospital care options not typically available through the NHS in a timely way

Under a PMI arrangement, the insurer and private healthcare network handle treatment logistics, so employees don’t have to queue or self-fund care. Their insurance simply covers it within the agreed policy terms.

These shorter waiting times and financial support are why private medical insurance is one of the most valued employee benefits that a UK employer can offer.

We believe that offering health insurance is a strategic investment in your employees’ wellbeing and, as a result, the future of your business.

Benefits for employers

• Reduced absenteeism – employees get treated sooner and recover faster
• Improved retention & attraction – health benefits are highly valued, especially among skilled workers
• Stronger employer brand – showing you prioritise employee wellbeing helps position your business as a great place to work

Benefits for employees

• Shorter waiting times for consultations, tests, and elective treatments
• More choice over specialists and schedules
• Comprehensive support – many group plans include mental health support, physiotherapy, and wellbeing resources

Providing a private healthcare scheme can feel daunting or out of reach to many UK SMEs as they face rising business costs, including increased National Insurance Contributions (NICs).

But with the right approach and partnering with the right providers, it could be more cost-effective than many business owners think.

For example, group schemes often work out more cost-effective per person than individual policies, especially once you’re covering multiple employees, and can be tailored to your workforce size and budget.

In a recent blog, we talked about using a salary sacrifice arrangement to save costs on pension contributions. The same can be done for group healthcare schemes.

This works by employees exchanging part of their salary for a non-cash benefit, in this case their healthcare scheme. This happens on their salary before tax and NICs to reduce costs to both the employee and their employer. Employees get the maximum value through tax and NIC savings and employers can save up to 15% in NICs.

To truly maximise value for employees, PMI should sit within a broader healthcare strategy and package that is designed to support both acute and everyday health needs.

PMI is excellent for fast access to specialist treatment and reducing NHS waiting times. However, many policies exclude chronic conditions or ongoing maintenance treatments. This is where complementary benefits make a significant difference.

For example, a healthcare cash plan can reimburse employees for routine therapies, diagnostic tests, physiotherapy, dental care, and even everyday GP consultations. While PMI steps in for major medical events, a cash plan supports preventative care and day-to-day health costs, creating a far more rounded and practical package.

Employee Assistance Programmes (EAPs) add another critical layer, offering confidential mental health support, counselling, and practical advice services. Access to specialist clinics for chronic condition management can also provide ongoing support where PMI may not cover long-term treatment.

Importantly, enhancing your healthcare offering doesn’t always require a large budget. Some of the most valued benefits are surprisingly affordable and can significantly improve employee wellbeing and retention. These include:

• Healthcare cash plans for everyday financial support
• Childcare support
• Employee Assistance Programmes (EAPs) for everyday mental health and life challenges
• Flexible working arrangements to support work–life balance
• Cycle to work schemes and season ticket loans to ease commuting costs
• Financial wellbeing tools

By layering benefits thoughtfully, employers can move from simply offering insurance to delivering meaningful, everyday support. The result is a healthcare package that feels comprehensive, accessible and genuinely supportive, not just something employees turn to in a crisis.

In today’s environment, where NHS treatment waits still stretch longer than many would hope, offering group private health insurance can be transformative:

• Employees benefit from peace of mind and faster access to care when health issues arise, improving wellbeing and satisfaction.
• Employers benefit from healthier, happier teams, reduced absence, and greater resilience in the face of workforce health challenges.

At a time when NHS waiting lists, and worker health challenges, matter more than ever to UK businesses, embracing group healthcare is not just a perk: it’s a smart, proactive approach to safeguarding your people and your business performance.