Benefits & Comp • 7 MIN READ
Healthcare Benefits: What Are Your Options and How to Choose the Right One
MAY 14, 2026
Healthcare benefits are among the most valued by employees and among the most complex for HR to manage. Here is a clear guide to the options available.
The main healthcare benefit types
Private medical insurance (PMI) provides access to private healthcare for diagnosis and treatment, bypassing NHS waiting lists. It is the most valued healthcare benefit in employee surveys but also the most expensive, with employer costs typically ranging from £500 to £2,000 per employee per year depending on cover level and age profile. Employee assistance programmes (EAPs) provide access to confidential counselling and support services at a lower cost (typically £20-60 per employee per year) and are therefore more accessible to smaller organisations. Health cash plans reimburse employees for routine healthcare costs such as dental, optical, and physiotherapy up to an annual limit.
How to choose
The right healthcare benefit mix depends on your workforce demographics, your budget, and the current health-related absence patterns in your organisation. For organisations where mental health absence is a primary concern, an enhanced EAP is typically higher-ROI than PMI. For organisations with an older workforce or roles with high physical demands, private medical cover for musculoskeletal treatment can significantly reduce long-term absence. Ask your employees what healthcare benefits they most value before making a significant investment: a benefits survey that takes five minutes to complete will prevent a substantial spend on a benefit that is less valued than the alternatives.
