We explore why do you need a healthcare cash plan, which has never been more apparent. The rising costs of healthcare, coupled with the increasing demand for prompt and medical services personal to each one of us, underscore the importance of having a financial safety net for health-related expenses. This blog post explores why healthcare cash plans are essential, supported by recent statistics and developments in the UK market.
The Current State of Healthcare Spending
The UK’s healthcare expenditure in 2022 was approximately £283 billion, a nominal increase of 0.7% from 2021. However, when adjusted for inflation, there was a real-terms decline of 4.5%, marking the first annual decrease in healthcare spending in recent years. This downturn followed a period of significant investment in healthcare due to the COVID-19 pandemic, which saw a substantial increase in healthcare expenditure by 26.8% in nominal terms from 2019 to 2022.
Source: Office of National Statistics – reported 23rd May 2023
The Role of Health Cash Plans – why do you need a healthcare cash plan
Health cash plans serve as a vital component of the UK’s healthcare financing, offering a way to manage everyday healthcare costs effectively. These plans cover a range of services, including optical and dental care, physiotherapy, and in some cases can include diagnostics like MRI or X-ray scans. Importantly, they offer flexibility, allowing individuals to receive treatment either through the NHS or privately, and can include additional benefits such as mental health support and access to GP helplines. This is all dependent on each healthcare cash plan provider’s schemes.
Market Trends and Developments
The health cash plan market has demonstrated resilience and adaptability, especially in response to the challenges posed by the pandemic. In 2020, the number of workers covered by corporate health cash plans, including both corporate-paid and voluntary schemes, increased by 3.7%. This growth indicates a recognition of the value of health cash plans in providing employees with affordable access to healthcare services.
Providers have also seen a shift towards enhanced coverage, moving beyond basic plans to include additional benefits under one scheme, such as those offered by us at WHA Healthcare. This trend reflects a growing employer interest in supporting staff wellbeing, with services such as virtual GP access and mental health support becoming increasingly popular.
The Impact on Employers and Employees
Employers play a crucial role in supporting their workforce’s health and wellbeing through benefits schemes. However, a significant portion of organisations still do not offer health cash plans, missing an opportunity to provide quicker access to health services and mitigate long NHS waiting times. The increasing engagement in health cash plans, particularly among small and medium-sized enterprises (SMEs), highlights their value in attracting and retaining talent by offering competitive benefits packages.
Rising Healthcare
The need for healthcare cash plans is evident in the face of rising healthcare costs and the demand for timely access to medical services. These plans not only offer financial relief for individuals and families but also serve as a strategic tool for businesses to invest in their employees’ health and wellbeing. As the market continues to evolve, health cash plans will likely become an integral part of the UK’s approach to healthcare financing, providing a bridge between public and private healthcare provision.
The resilience of the health cash plan market, coupled with the ongoing economic pressures and healthcare demands, underscores their importance. By offering a safety net that covers a broad spectrum of health-related costs, health cash plans ensure that both individuals and employers can navigate the challenges of modern healthcare with confidence and financial security.
Why do you need a healthcare cash plan? If you want to find out more and how we may be able to assist you feel free to speak to one of our friendly team members, by email or calling us.
