EXCLUSIVE: London Luton Airport has halved its health insurance premiums and seen employee take up of its health benefits rise to nearly 100% over the past year.
The airport launched a health cash plan, Mosaic, and hospital treatment insurance, with healthcare provider Westfield Health in 2012.
Mosaic, which can be tailored to a workforce, includes a 24-hour counselling and advice line, and up to six face-to-face counselling sessions for the airport’s 600 employees.
The hospital treatment insurance provides staff with access to non-threatening surgical and medical procedures.
London Luton Airport had previously provided all employees with a private medical insurance (PMI) scheme, but less than half the workforce took up the benefit up, and it had become expensive to run.
The new health plans were introduced to provide a benefit that appealed to a higher proportion of staff, and to help the organisation manage costs and reduce absences.
Alasdair Campbell, HR manager at London Luton Airport, said: “The new arrangements have been extremely well received by our employees, and I am absolutely delighted that so many have taken them up.
“We are now able to offer health benefits that suit everyone, as well as being able to better manage and control our costs.”
Ian Green, sales director at intermediary PMI Health Group, said: “We proposed a new approach: a cash plan teamed up with a product that provides cover for surgery.
“It was completely tailored to the airport’s needs, with the appeal to the wider workforce.
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“The Mosaic plan has cut costs by halving premiums, while giving more staff access to everyday healthcare benefits, many of which they had not received before, including dental and optical care.
“Take up has increased to almost 100% of all staff, while the provision of an employee assistance programme assists with the airport’s duty-of-care obligations.”
Whilst it is good to see companies reducing their costs, the headline is a little misleading. Closing a full medical insurance contract and replacing it with a cash plan can be considered a significant reduction in benefit. The cash plan will effectively lean on the NHS to provide cover for the more serious types of conditions and it certainly won’t provide the speed of access that a traditional medical insurance scheme does – and this is the crux of the issue. What happens if Luton Airport suffers a spate of serious MSK or cancer claims? How long are those employees going to be absent? Would access to a traditional medical insurance plan assist with speedier recovery. I think careful consideration needs to had when closing a medical plan and directly replacing it with a cash plan as there are significant differences.
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