Cash plans have long been a staple of employee benefits but as expectations around workplace health and wellbeing change, the sector is looking again at the role these products play in the workplace.
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At a Corporate Adviser roundtable with Unum at the iconic Battersea Power Station, industry leaders explored how cash plans can evolve to stay relevant and deliver value for today’s employees. Delegates discussed product design, integration with other benefits and how to overcome engagement and accessibility challenges. The discussion highlighted how digital tools, personalisation and clearer pathways can turn cash plans from a basic benefit into a core part of workplace health and wellbeing.
Universal appeal
Gallagher employee benefits consulting leader Anders Lewis said the product appeals to the workforce who don’t have to be in ill-health to get benefit from these plans. He said cash plans are a proactive way for employers to support the health of their staff, covering routine care such as dental check-ups and eye tests, giving employees tangible cash back, which is valuable.
Isio director of employee benefit health and wellbeing Allyson Gayle highlighted the role cash plans play in supporting everyday health. She noted challenges around cost and taxation, but emphasised that cash plans have a place in the benefits mix.
“Cash plans definitely have their place, but there is space for evolution to work more cohesively with private medical insurance, which is seen as a more expensive product and out of reach for certain cohorts and businesses.”
Employer benefits
Mercer market development leader David Bourne said cash plans have universal appeal across the workforce, given the range of benefits offered, which include preventative health screenings, virtual GP services and prescription support.
Bourne contrasted this with PMI, which is often only offered to a small number of employees. He added that cash plans provide ongoing support PMI may not cover.
He said: “The cash plan does give that continual maintenance and monitoring that other healthcare products do not.”
He added that it looks like a good time to offer broader health benefits, given the focus on equity and employee wellbeing.
He said these cash plan products also offer significant benefits to the employer, particularly when it comes to better understanding workforce health and addressing potential issues, so helping to boost productivity and wellbeing.
Unum UK CEO Mark Till agreed that the real value of a cash plan lies in the insight it offers employers into the health and wellbeing of their workforce. He said that while routine benefits like dental and optical are widely used, understanding patterns through GP appointments, physiotherapy, medical referrals and diagnostic tests can highlight gaps in employee welfare provision.
He described Unum’s new cash plan, Health Plan 360, as being designed to bring these services together in one place from a single supplier.
He said: “You can then see the whole pathway, from the GP referral to physiotherapy and onward support, without having to manage multiple providers.”
Till added: “It gives employers clear, actionable insights while keeping employee information private.”
Benifex head of health Rebecca Rann said this was a real benefit. She said: “From preventative health screenings, all the way through to getting money back for a consultant appointment, it covers that whole journey, which is one of the really positive things about today’s cash plans.”
Accessibility
Accessibility was highlighted as a key factor, with Lucy Pearce, commercial director at Brown & Brown noting the importance of digital accessibility. She said having a digital “front entrance” allows employees to engage quickly with the service. Without this engagement tends to remain low she said.
Delegates agreed that cash plans often have a lot to offer but can be underused simply because it can be difficult for employees to navigate the various services and benefits offered. Till said: “There are a lot of features in the cash plan, but because they can be a bit higgledy-piggledy about where you access them, people don’t make the most of them.”
He added: “That’s why we put them all together in Help@hand, so you can see them all in one place.” Help@hand is Unum’s centralised health and wellbeing app, available to all workplace customers. He added: “If you can see all these benefits you can probably use them all. But if you can’t see them, you won’t make the most of them.”
Gayle also stressed the importance of navigation and communication in driving engagement. “For an employee, it’s not about knowing what you’ve got, it’s about knowing where to go when something’s wrong.”
Communication and engagement
Pearce emphasised the importance of communication saying that if the plan is clearly promoted and employees understand the benefits, they are more likely to use it. She added: “We know PMI increases are insane out there this year and beyond”, underlining the need for employees to engage with the cash plan to manage costs effectively.
Gayle noted that accessibility and cost are key factors when it comes to engagement, and failing to address either of these can limit uptake.
Lewis agreed, pointing out that high excess payments or complicated claims processes will also discourage employees from using the plan and reduce engagement levels.
But Aon principal consultant Joe Broadest noted that engagement goes beyond routine spend, with effective measurement and reporting key to ensuring employees understand and use the benefits.
Rann pointed out that demand for cash plan products was rising, even among employees who paid for these benefits on a voluntary basis. She said: “Despite the rising cost of living, the number of employees prepared to pay themselves for cash plans, is increasing by 10 or 15 per cent year on year.”
She explained that engagement improves when benefits are clearly communicated, helping employees understand the value of the plan and encouraging participation.
What’s in a name?
Rann noted that the term “cash plan” does not always resonate with younger employees when compared to private medical insurance, even though understanding the benefit drives uptake.
Till added that when launching the Unum product, the company deliberately avoided the term “cash plan,” instead calling it Health Plan 360, which he said helps convey the fact this product supports overall health, and offers more than just the cashback benefit.
Bourne explained that while the classification of cash plans is regulated, the label shouldn’t define the product itself.
He noted that the market is evolving, with providers increasingly offering plans under different names such as health plans or reimbursement plans, even though they still fall under the same regulatory category.
Broadest suggested that advisers should reset client expectations about what a cash plan can deliver.
He said: “How do we change that wording with clients and cash plan? Is it going to make them buy more? No. But resetting their expectations of what this can do, that is going to move the dial.”
Lewis emphasised the importance of clear communication in driving engagement. He said: “A huge part of our time is spent clarifying and explaining the plan, because if people have no clue what it is, they won’t use it. Once they understand it, they’re much more likely to take it up.”
He added that making the plan simple and easy to understand is key to encouraging wider participation to the benefit of both employers and employees.