The Simple Truth

In a small team, you aren’t just staff. You’re family. When one person is stuck on a waiting list, the whole business feels the strain.

Running a small business is rewarding, but it comes with a reality that larger companies rarely face: every single person matters. When your office manager is off sick for six weeks, it’s not a rounding error. It’s a crisis. And in today’s NHS landscape, six weeks can feel optimistic.

The good news? There’s a straightforward, cost-effective solution – and most business owners don’t realise it’s even available to them.

The State of the Nation’s Health (and Your Team’s)

The UK workforce is struggling. According to the Institute for Public Policy Research (IPPR), the hidden cost of employee sickness reached £103 billion in 2023 – up £30 billion since 2018. That’s not just sick days; it’s the productivity lost when people drag themselves in feeling awful because they can’t afford to be off.

Source: IPPR, ‘Healthy People, Prosperous Lives’, 2024

For SMEs specifically, a YouGov survey of over 2,000 UK business decision-makers found the median cost of employee sickness is nearly £28,000 per year – equivalent to 1.7% of average annual turnover.

Source: Unum / YouGov, 2025

The NHS Waiting Time Problem

Here’s the uncomfortable reality. The NHS – brilliant as it is in a crisis – has a significant backlog for non-emergency care. As of late 2025, there were over 7.3 million cases on the NHS waiting list in England. The median wait to start treatment was 13.4 weeks.

Source: NHS England / BMA NHS Backlog Data Analysis, December 2025

That means your employee could be waiting three months or more just to see a specialist. If it’s a back problem, a mental health issue, or a condition that’s gradually getting worse, three months off – or three months of reduced performance – is an entirely realistic scenario.

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The Hidden Cost: Medical Inflation

Private medical insurance premiums do go up every year – but so does the cost of NOT having it. UK private medical inflation hit 12.6% in 2024, according to Willis Towers Watson’s Global Medical Trends Survey. That sounds alarming until you do the maths.

Source: Willis Towers Watson Global Medical Trends Survey, 2024

A group PMI policy for a small team typically starts from a few pounds per employee per day. Compare that to the cost of covering a key person’s workload for three to six months, the cost of recruitment if they resign, or the knock-on effect on your other team members who pick up the slack. Suddenly, the maths looks very different.

It’s often cheaper to pay for a monthly group policy than to lose a key person to a six-month waiting list.

What Your Employees Actually Want

It’s not just about cost. Health benefits have become one of the most valued workplace perks in the UK – and the evidence is striking.

Health benefits give employees what they can’t get from a pay rise alone: certainty. The knowledge that if something goes wrong, they’ll be seen quickly. That peace of mind translates directly into loyalty, engagement, and retention.

Source: Drewberry Employee Benefits & Workplace Satisfaction Survey, 2024 / 2025

The Tax Advantage – The Part Most Owners Miss

Here’s a detail that often surprises business owners: group private medical insurance premiums are, in most cases, 100% tax-deductible as a business expense. This means the government is effectively contributing to the cost.

• Premiums paid by the company are deductible against Corporation Tax
• It’s classed as a P11D benefit for employees, but the net cost after tax deductibility is often less than employers expect
• For many SMEs, the effective cost after tax relief is significantly lower than the headline premium

We strongly recommend discussing the tax treatment with your accountant, as individual circumstances vary – but for most limited companies, it’s a genuine win-win.

What a Group Policy Actually Covers

Modern SME health insurance policies are far more flexible than they used to be. Depending on the level of cover you choose, a typical policy can include:

• Fast access to a GP – often same-day via a Digital GP service
• Specialist consultations without the NHS wait – usually within a week
• Diagnostic tests and scans, often within days
• Mental health support – a major and growing area of need
• Physiotherapy and rehabilitation
• Prescription delivery to your pharmacist

You choose the level of cover that fits your budget and your team’s needs. And as your broker, we help you compare the whole market to find the right fit – not just the first quote we can get.

A Quick Comparison

	NHS	With Group PMI
GP appointment	2-4 weeks average	Same day (Digital GP)
Specialist referral	13+ weeks median	Usually within a week
Diagnostic scan	6+ weeks	Days
Mental health support	Long waits, threshold barriers	Fast direct access
Cost to employer	Lost productivity	Tax-deductible premium

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Next Steps

Getting a quote is straightforward and costs nothing. As an independent broker, we compare policies from all the leading UK insurers – including AXA Health, Bupa, Aviva, Vitality, and others – to find the right fit for your team size, budget, and needs.

There’s no pressure, no jargon, and no obligation. Just a straight conversation about what would genuinely help your business.

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This guide is for informational purposes only and does not constitute financial advice. insuremyhealth.uk is an independent private medical insurance brokerage. Always seek independent advice tailored to your personal circumstances.

Insure My Health is a trading style of Parkway Mortgages Ltd, an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Number: 6748364 Registered Office: 78 Castle Lane West, Bournemouth, Dorset, BH9 3JU.