Majority access vital healthcare through workplace insurance, ABI finds

New data released by the Association of British Insurers (ABI) highlights the significant role that workplace insurance schemes play in providing access to healthcare services. In 2022, out of the 1.8 million people who utilised health or protection insurance, 1.3 million (75%) did so through their employer’s scheme.

The report also pointed to the increasing reliance on digital health solutions, noting that nearly 600,000 individuals used virtual GPs provided by their employers, making up 87% of the 700,000 total users in 2022. The number of virtual GP appointments surged by 92% from the previous year, reaching 1.4 million.

Workplace schemes were particularly pivotal for those seeking mental health support, with 94% of the 1.2 million counselling and therapy sessions facilitated through employers.

Highlighting the importance of these findings amid rising long-term illness levels impacting businesses, the ABI has issued a call to the government to enhance the efficacy of workplace health insurance. Proposed measures include increasing statutory sick pay, introducing ‘phased returns to work’ for employees recovering from long-term illness, and financial incentives for small and medium-sized enterprises (SMEs) to support employees’ return to work.

Furthermore, the ABI advocates for a reduction in the tax burden on health and protection insurance to make it more accessible for businesses and low-income workers. This includes cutting the Insurance Premium Tax, removing employer-paid National Insurance Contributions on health insurance, exempting health insurance premiums from employee-paid income tax, and eliminating double taxation of Group Income Protection purchased through salary sacrifice.

Dr Yvonne Braun, Director of Policy, Long-Term Savings, Health, and Protection at the ABI, emphasized the urgency of these reforms: “Some 2.8 million people are out of the workforce because of long-term sickness. Keeping people healthy and in work is vital for our economic growth and productivity as a country. Our latest data demonstrates that there is huge demand for health services provided by workplace insurance. The data also shows an exponential rise of virtual GP appointments, a good example of the speed and flexibility of health services insurers provide through the workplace. We urge the Government to work with us to leverage fully the contribution workplace insurance can make.”