In Australia Top Table private health insurance premiums currently cost more than $4,000+pa for a single person and $8,000+ pa for a couple/family. This is before the April 1 2016 premium increases. In addition, there are often substantial out-of-pocket expenses.
Health insurance is increasingly expensive, and given our ageing population, it’s a trend that is likely to continue.
So why should organisations even consider offering health insurance as an employee benefit, given the potential FBT implications?
- First and foremost, business is done through people. And attracting and retaining the best talent is difficult. Employees are no longer disposable. The employer is now disposable. The offer of corporate private health insurance plans will establish an organisation as an ‘employer of choice’. An organisation that looks after its people is a key differentiator for people choosing their next workplace.
- Rising costs, legislative changes, and new provider models are changing the market. The health care industry in Australia is currently going through a transformation. As health care evolves, so must the employer’s role in it.
- Employers must rethink their role in the delivery of private health insurance benefits. Managing costs, including FBT is vital, but so is providing employees with greater peace of mind around their workplace benefits. This leads to staff loyalty.
Legislative changes have challenged traditionally structured corporate health plans.
HICA has responded with the development of a range of innovative and flexible health plan structures.
Companies that have reviewed and restructured their private health plans with HICA have been able to attain cost certainty and administrative simplicity. They’ve also been able to better align their private corporate health plans with both the company and HR objectives.
If you are interested in implementing a business health plan in your workplace, talk to the team at HICA today. HICA can offer access to Australian health insurance suitable for businesses of all shapes and sizes.