Below you will find answers to questions we frequently get asked about our health care cash plans for businesses. If you need any more help, give us a call on 01274 841 127 or enquire online. Lines are open Monday to Thursday 9am to 5pm and Friday 9am to 4pm.

What is a health care cash plan?

Sovereign Health Care’s cash plans are there to help individuals financially when they need to access health care. By paying a small amount each month, either on an employer paid or employee paid basis, individuals will get cash back towards treatment they have received. It can help your employees to budget for the everyday costs of health care – cost no longer has to be a reason for delaying treatment.

Why should my employees have a health care cash plan?

Our health is the most important thing we will ever possess, although sometimes we only realise this when it has deteriorated. The financial burden associated with everyday health care can often prevent people from having treatment. However having a cash plan in place can help take away that burden and encourage employees to seek treatment early on, resulting in fewer days off work and a happier, healthier workforce.

Plus, providing your employees with access to a Sovereign Health Care cash plan increases the value of your overall staff benefits package, making your organisation more attractive to your staff.

What is the difference between employer paid and employee paid health care cash plans?

With an employer paid health care cash plan, such as Asset and Merit from Sovereign Health Care, the employer pays the monthly premiums for their employees. They might do this for a variety of reasons ranging from wanting to enhance remuneration packages to helping meet duty of care or DSE requirements. The employee is the policyholder and they can claim back costs they have incurred for a range of benefits up to the policy cover level.

Where a business isn’t in a position to pay for cover, they might still want to give their employees access to a health care benefit. To do this they could link up with Sovereign Health Care and offer access to our cash plan on an employee paid basis. Employers can also support their employees by arranging for premiums to be deducted directly from their salary – that way the employee doesn’t have to worry about another Direct Debit.

What are the tax implications for employees should employers fund the scheme?

Premiums paid by the employer are a potential P11D benefits for all directors and employees earning at least £8,500 per annum. The value of benefit is determined by the premiums paid and not the benefits claimed from the cash plan policy. Tax is charged at the normal rate of tax for each individual employee i.e. either basic or higher rate. For example the premium for Level 1 of the Asset cash plan is £76.20 per annum so basic rate tax can be as little as £15.24 per annum or £1.27 per month, and higher rate tax £30.48 per annum or £2.54 per month. This is based on tax rates of 20% and 40% respectively. Premiums funded by the employer are normally considered as a business expense and this should be confirmed with the local tax office.

How is the employee paid scheme promoted to employees?

To help you make the most of your Sovereign Health Care cash plan scheme, we can offer tailored marketing activity to suit your needs. We have a range of marketing activities, these include:

  • Direct mail to your employees either at their work or home address
  • Direct mail and/or emails to staff every 6 to 12 months to remind them of the benefits they could be enjoying
  • Promotional messages on pay slips or leaflet distribution with payslips
  • Information for permanent display on your corporate intranet and notice boards
  • ‘Introduce a colleague/friend’ initiatives once the scheme is established

We also have a dedicated worksite team who will visit your office(s) and meet with your staff face to face. Onsite promotion is a great way of introducing Sovereign Health Care to your staff and gives them the opportunity to ask any questions and establish if a health care cash plan is right for them. Our account executives can meet with staff individually, as a group or simply be on hand in the staff canteen. We also have a range of incentives to encourage staff to join on the day, including high street vouchers.

Sovereign Health Care will cover the cost of this marketing and we will tailor the launch of your scheme to your business.

Are children covered?

Asset – employer paid
Yes, dependent children up to the age of 17 are covered at the same level as the employee at no extra cost for optical and dental benefits only.

Merit – employer paid
There is no cover for dependent children with Merit.

Sovereign Health Care cash plan – employee paid
Yes, dependent children up to the age of 18 are covered at the same level as the policyholder at no extra cost for all benefits except birth/adoption, home care, hearing aids and specialist medical aids.

What is the best health cash plan for the self-employed business owner?

The most appropriate cash plan for your business will depend upon your aims and objectives as a business. Whatever your circumstances, Sovereign Health Care has a range of cash plans designed to meet a variety of business needs.

Can employees also cover their partners?

Yes, your employees also have the option of paying to cover their partners.

Will my employer know the details of my health problem if they are paying for my cash plan?

No, everything is completely confidential. When you make a claim you will deal directly with Sovereign Health Care and we will not disclose any information about individual claims to your employer.

Sovereign Health Care and Sovereign Health and Insurance Services Limited comply with the Data Protection Act 1998. Sovereign Health Care is committed to keeping your personal information secure, including sensitive personal information relating to health or medical conditions.

Employer paid

From £4.15 per employee, per month

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Employee paid

At no cost to your business

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