What is a business health plan — and what should it cover?

In today's workplace, employee health isn't just a wellbeing issue, it's a business issue. Rising absenteeism, long NHS wait times, and the increasing cost of private cover mean more businesses are exploring health plans tailored to their workforce.

But what exactly is a business health plan? And what should it cover to make a real difference?

Let’s break it down.

What is a business health plan?

A business health plan is an employee benefit that gives people access to medical support, wellbeing services, and sometimes cashback on everyday healthcare costs. While traditional business health insurance often focuses on treating illness, modern business health plans are shifting towards prevention, giving employees quicker access to advice, early detection, and wellbeing tools that help them stay healthy and in work.

For employers, it’s a way to reduce absenteeism, improve retention, and create a healthier workplace culture, without the high costs typically associated with private medical insurance.

Why businesses invest in health plans

Business health plans are becoming a key part of many companies’ people strategies. With rising sickness absence and growing awareness of mental health needs, employers are recognising that reactive support isn’t enough.

Instead, a proactive approach to employee health is needed, one that gives people the tools to look after their physical and mental wellbeing before problems escalate.

Offering a business health plan can also:

• Support talent attraction and retention
• Reduce long-term sickness absence
• Show employees they’re genuinely valued
• Support HR and wellbeing teams with more structured services
• Build resilience across the organisation

Business health plan vs business health insurance — what’s the difference?

Though the terms are often used interchangeably, there’s a difference between a business health plan and traditional business health insurance.

• Business health insurance (also known as private medical insurance or company medical insurance) is designed to cover the cost of private medical treatment when employees become ill or need surgery.
• Business health plans are typically lower-cost and more focused on prevention. They offer fast access to services like GP consultations, counselling, health assessments, and cashback for everyday medical costs — helping to keep people healthier in the first place.

Many companies are now choosing health plans because they fill the gap between NHS support and costly insurance policies, offering employees meaningful benefits at a sustainable price.

What should a business health plan include?

A modern business health plan should go far beyond routine check-ups or reimbursement for dental and optical costs. It should reflect the real health and wellbeing challenges employees face today, and offer fast, accessible support when it’s needed most.

Look for plans that offer a holistic blend of health, wellbeing, and digital tools, such as:

• Everyday healthcare support
  This can include things like cashback on optical, dental, and physiotherapy costs — helping employees afford routine care and stay on top of their health.
• Quick access to expert help
  Remote GP appointments, digital physiotherapy services, and online health assessments allow employees to get the support they need without long waits or travel time.
• Mental health and emotional wellbeing
  Confidential counselling, mental health check-ins, and wellbeing resources can all play a vital role in keeping employees mentally well and emotionally resilient.
• Health risk assessments and early detection
  Some plans include tools that help users understand their health risks — such as screenings or digital services for issues like skin conditions or musculoskeletal health — so they can take action early.
• Wellbeing and lifestyle support
  Quality plans also include digital wellbeing hubs or apps covering sleep, nutrition, exercise, financial wellbeing and more — helping employees make positive lifestyle changes.

In short, a business health plan should act as both a safety net and a springboard: protecting employees when they need it and helping them thrive day to day.

Is a business health plan right for your organisation?

Whether you're a small business or a larger organisation, a health plan could be a cost-effective way to support employees and reduce the risk of long-term absence.

The key is to choose a plan that aligns with your culture, your budget, and the needs of your workforce. It doesn't have to be expensive, but it should be meaningful.