Healthcare & wellbeing – definitions – Healthcare cash plans

A cash plan allows employees to seek treatment for ailments then claim the cost of the treatment back.

Healthcare cash plans have a role to play in controlling employee absenteeism.

Like Private Medical Insurance (PMI), cash plans are also popular with employees, are an aid to recruitment and retention, and to differing degrees, employee absenteeism.

A lump sum is paid to meet certain medical, dental or optical needs or to cover expenses for a hospital stay. Health care cash plans are traditionally cheaper than PMI.

A healthcare cash plan will benefit almost all employees because it covers everyday expenses, such as dental or optical.

Flexible benefits platforms can assist employers which want to make both PMI and cash plans available to staff.

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