Small businesses lead the way in healthcare

Date: 22nd June 2009

Spending on employee healthcare in the form of Health Cash Plans has increased in the past year by 180 per cent, with small to medium sized businesses the most proactive.

According to research conducted by Simplyhealth healthcare from Employee Benefits data, 27 per cent of companies employing fewer than 100 staff have implemented a Health Cash Plan in the past 12 months.

In contrast, only 17 per cent of companies employing 100 to 500 people have employed a Health Cash Plan, with this figure dropping even further to three per cent for companies with 501 to 1000 employees.

Charles Cotton, advisor for performance and reward at the Chartered Institute of Personnel and Development, said he was surprised at the increase in healthcare spending in the midst of difficult economic times.

"Given the current economic climate it is surprising that organisations are spending more money on healthcare especially as the number of employees is dropping," he commented.

Mr Cotton went on to say that in order to reduce costs, companies will in the future see a 'change in attitude' and place a heavier emphasis on employee wellbeing and lifestyle rather than healthcare schemes.