What Is Private Medical Insurance (PMI) and Why It Matters for Your Business

When it comes to supporting employee wellbeing, few benefits make as big an impact as Private Medical Insurance (PMI).

PMI gives your employees quicker access to diagnosis and treatment, helping them return to health - and work - faster. But it’s more than just speed. Offering PMI shows your team that you value their health, building loyalty and positioning your company as an employer of choice.

For businesses, it’s a practical way to reduce absenteeism, boost morale, and attract top talent - all while supporting a culture of wellbeing.

What Is Private Medical Insurance (PMI)?

Private Medical Insurance covers the cost of private healthcare for your employees - including consultations, tests, and treatments that might otherwise involve long NHS waiting times.

Most group PMI policies include:

• Access to private hospitals and consultants

• Inpatient and outpatient care

• Diagnostic scans and tests (MRI, X-rays, etc.)

• Specialist consultations

• Cancer cover and mental health support (depending on the plan)

It’s designed to work alongside the NHS, not replace it - giving employees more choice, convenience, and reassurance.

Why Businesses Offer PMI

For many organisations, PMI forms the backbone of their employee benefits package. Here’s why:

1. Improved Retention and Recruitment

PMI is consistently rated one of the most valued workplace benefits. It helps attract new talent and keeps existing employees loyal - particularly in competitive sectors.

2. Reduced Absence and Faster Recovery

By enabling early diagnosis and treatment, employees recover sooner, minimising downtime and keeping productivity steady.

3. Positive Culture and Morale

When employees feel supported, they’re more engaged and motivated. PMI shows you’re serious about wellbeing, not just policy.

4. Peace of Mind

Knowing their health is protected helps staff feel secure - a small benefit with a big emotional impact.

What Does It Cost?

PMI costs depend on several factors:

• Number of employees covered

• Level of cover (basic to comprehensive)

• Age of members

• Location and hospital access

• Optional extras (dental, optical, mental health)

Many providers offer scalable solutions, so even small businesses can offer PMI as part of their benefits mix.

(Excellect works with all major insurers and can provide a whole-of-market comparison — completely fee-free.)

How PMI Fits Within a Benefits Package

PMI works particularly well when paired with:

• Health Cash Plans - for day-to-day costs like dental and optical care

• EAPs (Employee Assistance Programmes) - for mental health and counselling support

• Group Protection - providing financial peace of mind for employees and their families

  
  

Together, they form a complete Health & Wellbeing offering that supports physical, mental, and financial wellbeing.

Reviewing Your Existing Cover

If you already have PMI in place, it’s worth reviewing it annually. Policy terms evolve, pricing shifts, and your workforce needs change. A whole-of-market broker (like Excellect) can check whether your current policy still fits, or if better options are available - without adding cost or complexity.

Final Thoughts

PMI is more than just a health benefit — it’s a statement. It tells your team that their wellbeing matters and that you’re willing to invest in it.

For employees, it’s reassurance.For employers, it’s retention, resilience, and reputation all in one.

If you’d like to explore what Private Medical Insurance could look like for your business, or want to review your existing policy, we’d be happy to help.

Speak to Excellect today for a fee-free, whole-of-market quote or review.