Understanding Cash Plans

A cash plan is an affordable employee benefit that allows your employees to claim money back on everyday healthcare expenses such as dental treatments, prescription glasses and contact lenses, NHS or private prescriptions, and physiotherapy. It’s a simple, cost-effective way to support your employees in managing their healthcare costs, with policies typically starting from just a few pounds per employee per month.

In addition, many cash plans include an Employee Assistance Programme (EAP), which can offer services such as stress management, legal advice, and financial guidance. This makes cash plans a great addition to an employee benefits package, and helps support overall well-being within your workforce.

In this article, we’ll break down what cash plans are, how they work, who the main providers are, the typical claims process, and what you need to know to set up and manage a cash plan effectively for your business.

Some of The Main Cash Plan Providers

When choosing a cash plan provider, it's important to consider the range of benefits offered, the benefit limits, and the overall pricing structure.

Some of the major providers include:

• Bupa

• BHSF

• Healthshield

• Medicash

• Simplyhealth

• UK Healthcare

• WPA

  
  

For more information on the various cash plan providers, including the different cover levels and pricing structures available, consider speaking to a regulated employee benefits broker.

Underwriting and Pricing Models

Most cash plan providers use MHD (Medical History Disregarded) underwriting. This type of underwriting has significant advantages, as it removes waiting periods, meaning employees can typically start claiming for eligible treatments straight away — including for pre-existing conditions.

The policy term is typically 12 months, after which you can either renew, cancel, or change your plan. Cash plans generally follow one of two pricing models:

1. Policy-rated pricing: Typically used by for-profit providers, premiums are based on the claims usage of the group. If your employees make more claims than anticipated, your renewal premium could increase more than usual.

   
   

2. Community-rated pricing: Typically used by non-profit or charity-led providers, premiums are based on the claims experience of all groups, meaning your premiums won’t be directly affected by your employees’ claims. Some community-rated providers may keep their premiums unchanged for several years, making this a sustainable option for many businesses.

   
   

Pricing and Cover Levels

Cash plan providers usually offer 3–5 levels of cover, ranging from basic to more comprehensive options. A basic plan can start from just a few pounds per employee per month, making it an affordable benefit that can be offered to all of your staff.

You can choose higher levels of cover for increased benefit limits, depending on your needs. Some plans also include outpatient benefits, which can help employees receive a quicker diagnosis and may reduce the need to use a Private Medical Insurance (PMI) policy for certain smaller claims, if one is in place.

Some providers also offer the option to cover part or all your PMI excess. This can be helpful if you don’t currently have an excess but want to introduce one to manage costs without impacting your employees, or if you already have an excess but prefer not to pass that cost onto your employees.

Setting Up and Managing Your Policy Through a Broker

Setting up a cash plan with your chosen provider is usually straightforward. A regulated broker typically handles all the paperwork, ensures the process runs smoothly, and answers any questions you may have. Once the policy is in place, your Group Administrator (GA) can easily manage it through the company portal, where they can add or remove employees, update details, and view company documents. Employees will also receive their own login details, giving them access to their coverage, benefit limits, and claim submission forms.

If your cash plan provider does not have a portal, member packs are usually sent directly to the employees. Claims are typically made through the insurer's website using specific logins, and any adjustments or changes can be handled through your broker.

Making a Claim

Claiming is simple and typically involves four steps:

1. Pay for the treatment upfront.

2. Obtain an itemised receipt for all treatment.

3. Log in to the portal or website, complete the claims form, and upload the itemised receipt along with your nominated bank details.

   
   

4. The claim is processed and, if eligible, the money is transferred directly to the employee’s nominated bank account, up to the agreed limits of the policy.

Adding Family or Upgrading Your Cover

Many providers offer employees the option to add their partners to the cash plan for a fixed fee, or for employees to upgrade their cover to a higher level. In most cases, children under 18 are included at no extra cost — just make sure to add them to the policy. These changes can typically be made through the member’s individual portal or website login.

Conclusion

As healthcare costs continue to rise, cash plans are becoming an increasingly valuable and cost-effective employee benefit. They offer a simple way to support employees with everyday healthcare expenses and can complement your existing Private Medical Insurance (PMI) policy by helping manage smaller claims without using the policy — or by covering all or part of the excess costs for your employees.

If your business has had a cash plan in place for several years, it may be a good idea to review it to ensure it’s still suitable and delivering the best value. Alternatively, if you don’t currently offer a cash plan, it could be worth speaking with a regulated broker to assess whether it might benefit your business and employees.

Disclaimers:

Disclaimer 1: The information provided in this article is accurate as of April 13, 2025. However, all details are subject to change in the future based on updates to insurer terms, market conditions, or regulatory changes. For the most up-to-date information, please contact a broker or contact the provider directly.

Disclaimer 2: The information provided in this article is intended for educational purposes only and should not be used as specific advice for any individual insurer or policy. For details regarding your specific policy, always refer to your insurer’s policy documents or contact a broker or your insurer directly for personalised assistance.