Although cash plans have historically been provided by an employer to “blue collar” employees, today they are relevant to all employees as individuals are having to contribute towards primary care, such as dental treatment, even in current public sector healthcare provision.

A cash plan reimburses some or all of the cost of dental treatment, physiotherapy, complementary therapies, and offers a tax-free cash benefit for each night spent in a hospital as an in-patient. A variety of benefit levels is available, with re-imbursement levels linked to the annual premium paid.

From the employer’s perspective, a cash plan is a low-cost benefit to provide. If it is provided at the employer’s expense it is classed as a benefit in kind, and subject to tax. Cash plans can also be offered on a voluntary purchase basis and are frequently included as part of a flexible benefits programme.

As well as offering advice on all aspects of cash plans we can undertake market reviews where appropriate.

To find out how Hewitt can help you contact us or learn more by downloading a brochure.