Replacing a high cost Corporate medical insurance policy, with a ‘self-funded’ healthcare scheme
The Business and their current situation
An international IT industry client, covering several hundred employees on a medical insurance policy who wanted to consider a self-funded option, normally referred to as a ‘Trust Scheme’.
They advised us that their previous IFA had carried out a market review once every two years, which resulted in their current scheme being expensive. The client felt they had little control on paying what they perceived to be a huge sum at each renewal. They were also dissatisfied with the way their current insurance company was not flexible enough to meet each member of staff’s ideal benefit level, leaving them with a lack of choice when it came to benefit changes by the insurer at renewal. Coupled with these factors and a more restrictive process for anyone making a claim they wanted to look at alternative solutions, hoping that these would be more suitable.
After carrying out a full market review we provided a proposal which included a choice of having a self-funded Trust scheme. It was found that the cost of the Trust was considerably lower, when compared to their current fully insured medical insurance policy. Therefore, the company decided to implement the Trust scheme at the next renewal. The Trust was also chosen because of the broad flexibility on choice of benefits, giving more autonomy and greater cash flow benefits, with no liability for the company to pay any insurance premium tax which, was increased again in June 2017. We arranged the whole process for the client, making sure the scheme was arranged on time and in the correct way.