Basics of company healthcare trust and the advantages of having one

A Company Healthcare Trust is an alternate way of offering a company’s staff business health Insurance. Though it seems to have been introduced recently, this isn’t the case. Instead, Company Healthcare Trust has existed since the 80s. Its recent popularity can be attributed partially due to Private Health insurance’s costly nature due to the rise in insurance premium tax (IPT). Instead of going for a group health insurance policy for your workers, which has accompanying costs such as IPT, with a health insurance trust, a company will be permitted to fund its workers’ medical treatment privately. Going for private health insurance always leaves a company with many questions, such as which health insurance can you trust. A company will even need to use review sites such as to select reputable insurance companies. However, a Health Insurance Trust will offer more benefits, especially for companies with many employees and high revenue turnover. This article helps the reader understand company healthcare trust. It provides some basic information and then provides the advantages of a company having a healthcare trust.

How company healthcare trust works

As an alternative to insurance policies with associated premium tax, a company healthcare trust is a pool of funds which, instead of paying premiums, an organisation pays into a trust. The trust fund can then be utilised to pay for the healthcare of the company’s staff. After money has been paid to the trust, tax reasons make it impossible for the cash to be returned to the employer. If the trust has any surplus at the end of the year that has not utilised for claims, it is possible to roll it over to the subsequent year. Because the employer funds their employee’s medical treatments in healthcare trust, employers are not bound to terms such as those of an insurer. Instead, they can cover whatever they deem fit. For example, most private Insurance policies don’t cover chronic conditions. A company healthcare trust can extend coverage for such conditions if the employer decides so. Company healthcare trust can also be personalised and made to suit the business, the employees’ needs, and the employer.

Advantages of having a company healthcare trust

1. The employer will only fund the used benefits

When claims are lower than the predicted amount,  the employer’s funds are retained instead of being used as a profit by an insurer, as is the case with private insurance. With company healthcare trust, the employer enjoys utilising stop-loss insurance to protect themselves from claims beyond their budget.

2. It helps enjoy greater flexibility

A company healthcare trust can be personalised to suit an employer’s requirements as it is a scheme of the employer. The employer can tailor it to offer diverse levels of cover to accommodate various employees groups. An insurer’s terms don’t constrain employers. Instead, they are at liberty to set their terms as they wish.

3. With nurse case managers, you enjoy superior service

Certain healthcare trust executives have nurse case managers instead of insurance claims administrators. Typically nurse case managers have greater empathy and medical expertise with the ‘claimant’, which helps them offer an experience that is more reassuring to them and ensure the correct medical procedures are followed, thus ensuring that the money is spent appropriately.

4. It helps Lower costs

With company healthcare trusthaving nurse case managers will ensure that an employee’s health is taken care of using the most suitable care pathways, thus eliminating high and avoidable treatment cost.

5. Provides a fully integrated healthcare

Company healthcare trust offers private medical benefits, and above this, it is possible to include other health associated benefits, including dental and cash plan benefits. If desirable, certain providers with nurse case managers can act as a central hub that coordinates provision with other services that intersect, such as income protection, which would help employees profit from the most suitable benefits. This helps achieve a provision of healthcare that is entirely integrated and enables employers to use their overall budget effectively.

6. Its tax efficient

The insurance premium tax (IPT) increased to 12% in June 2017,  increasing overall insurance premiums. Thus, healthcare trust is becoming the preferred choice, as it doesn’t have high insurance premium tax rates. It is cheaper and more tax efficient.

In conclusion, company healthcare trust has become increasingly attractive, with many organisations adopting it. It may be hard to understand company healthcare trust and its advantages, especially for those who have not heard much about it. This article has covered company healthcare trust and its advantages to help the reader with a better understanding.