New health insurance direction urged

Two companies based in the North-West of England are trying to make Britain’s businesses explore an alternative to private medical insurance for their staff. The companies claim that switching their health insurance could save hundreds of millions of pounds.

The different type of scheme, known as a self-funded trust, cuts down on the escalating premiums paid by many firms. According to industry experts, the cost of medical insurance climbs by 8.9 per cent per annum.

Private health insurance remains a popular benefit amongst employees, but the new scheme provides exactly the same levels of cover. Griffiths and Armour Financial Services have joined with O’Connors LLP to set up individual Corporate Healthcare Trusts for employees – with a potential saving of up to 40 per cent.

A founding partner at O’Connors LLP, Paul O’Connor, reportedly commented: Setting up a Corporate Healthcare Trust can be an attractive option, and not just for very large companies but also for many mid-sized companies who are running schemes with a head count of 500 members.