Healthcare trusts for smaller employers

Businesses and organisations with as few as 100 employees are being offered access to the benefits of a healthcare trust fund following the launch of Medical Care Direct’s new ’Health Link’ offering. The scheme offers third party administration, a treatment sourcing service and stop loss insurance as one fixed price package.

MCD says healthcare trusts that offer employers savings of up to 20 per cent a year when compared with the costs of other corporate healthcare schemes such as PMI have only previously been available to employers with typically over 1,000 members because of the cost and complexity of their set up process. Stop loss insurance is available to those employers who wish to put a cap on their trust’s liability should treatment costs exceed the trust fund. Conversely, if claims costs are less, then surpluses are retained in the scheme to offset future costs.

Jan Lawson, chairman of MCD says: “This is an alternative to standard corporate healthcare provision and offers a significant potential saving to the employer. Health Link originated through a desire to meet the needs of clients with unusual risk profiles which made arranging standard private medical insurance difficult and costly to arrange. Although a healthcare trust is not suitable for every organisation, they should at least be considered by employers and their insurance advisers alongside other options in the decision making process.”