What to consider for small business health plans: Affordable employee benefits for teams of 3-9 people.

When you run a small business, the value of a health benefit has to be easy to see. You need a cost your business can plan for, benefits your people will understand and a straightforward setup that does not become another job for the owner or office manager.

BHSF’s Small Business Health & Wellbeing Plan is designed for start-ups and small teams of 3–9 employees, with plans starting from £7 per employee per month. The quote and the final cost for your small business will depend on the cover and arrangement you choose.

For a small team, a useful health benefit does not have to mean paying for comprehensive private medical insurance. A health cash plan has a different purpose - it helps employees recover eligible everyday healthcare costs, up to the limits of their cover.

What can employees use it for?

A health cash plan can help with familiar expenses such as dental appointments, eye tests and glasses, physiotherapy and other eligible therapies. BHSF’s business health plan benefits also include prescription charges and diagnostic consultations and scans. Employees pay for an eligible service directly at the time of their appointment just as they normally would. They then submit their receipt through BHSF’s online claims portal or app, and receive money back up to the relevant cash limit.

That makes the benefit relatively easy to explain. Staff can see which everyday costs are covered, how much they can claim and what they need to do after an appointment. Before launching a plan, check the benefit schedule so you can give employees accurate examples rather than suggesting every treatment or expense will be reimbursed.

The small business offering also includes digital tools covering eye health, dentistry, physiotherapy and skin checks. BHSF’s health cash plans also include access to a GP helpline and an Employee Assistance Programme (EAP) within the offering. The exact services and access terms should be confirmed in your chosen package.

Why might a small team value these benefits?

In a small business, employees often work across different roles and cover a broad range of tasks and responsibilities. If someone needs support with a health concern, it helps to have clear information about the services available to them, not just a policy document they have never opened.

For example, an employee who needs physiotherapy can check whether their treatment is eligible for cashback and whether a digital physiotherapy service is included in their cover. Another employee may value support towards the cost of glasses or access to confidential EAP support. Those are very different needs, which is why it is worth showing staff the full range of relevant benefits rather than promoting the plan as a single-purpose perk.

A health cash plan can play a role in helping reduce absenteeism and boost productivity. However, its more immediate value is practical, helping employees understand and access support for eligible healthcare needs.

Benefits for employees and families

A workplace benefit may be more meaningful to employees when it reflects responsibilities outside work as well as their own health needs. Employees’ children can be covered under our small business plan at no additional cost, subject to the age limits set out in the policy. Before communicating this to your employees, confirm the eligibility criteria and any options available for wider family cover.

When introducing the plan, provide employees a clear and short explanation of who can claim, what they can claim for and where to find the policy limits. This practical guidance can make the benefit easier to understand rather than just giving a broad promise of “family healthcare cover”.

How can a small business fund a plan?

We have three funding approaches for our small business health plans:
Employer-paid, Employee-paid and Hybrid.

This gives you a flexible starting point for considering how much the business wants to fund and how much choice employees should have over their cover.

• Employer-paid: The business pays for the agreed cover, creating a defined benefits cost to include in its budget.
• Employee-paid: Employees pay for the cover they choose, subject to the options we make available.
• Hybrid: The business and employees share costs under an agreed arrangement.

The right option for your small business depends on your budget and what you want the benefit to achieve. If you are comparing proposals, ask for the full employer cost, any available employee upgrades and the administration required for each funding model. That will give you a more useful comparison than just looking at the starting monthly price alone.

Check the tax position before launch

Do not assume that a health cash plan is automatically a tax-free benefit. HMRC guidance states that where medical or dental treatment or insurance is provided by an employer, is not exempt and it must be reported, and tax or National Insurance may be due. The requirements vary according to how the arrangement is provided and paid for.¹

Discuss a funding model with your payroll team or tax advisor before committing. They can assist you in determining what the business should be reporting and what the tax implications might be for your staff. This is particularly important if you are considering employee contributions or a hybrid approach.

Keep implementation simple

A small business does not need a complicated launch programme, but it does need a clear one. Begin by agreeing who will be eligible, how the plan will be funded and which level of cover fits your budget. Then confirm the start date, enrolment information, claims process and who employees should contact with questions.

Provide a brief overview for staff at the start of the plan. Provide them with information on how to access benefit limits, claim procedures and electronic or confidential assistance provided by their cover. Review with new employees when the benefit rolls out to maintain visibility after launch.

Our small business plan includes an easy setup and an assigned team to support employers. Confirm what onboarding materials and ongoing help will be available with your quote.

For a team of 3–9, the best health plan is one the business can afford to maintain, and employees know how to use. Start with the cover that addresses everyday needs, check the funding and tax implications, and make the claims process clear from day one.

References

1. https://www.gov.uk/expenses-and-benefits-medical-treatment/what-to-report-and-pay