BUPA launches fixed price medical insurance scheme for small companies

BUPA launches fixed price medical insurance scheme forsmall companies

 

8 May 2001

 

BUPA has today launched a brand new way to pay for medicalinsurance that, for the first time, offers small companies the chance to fix subscriptionsfor two years.

 

Called BUPAFixed Price (2 Years), the scheme enables small companies to tackle theunpredictable rise in private medical insurance (pmi) subscriptions - one ofthe biggest issues they face when buying medical cover for their staff,according to BUPA research.

 

"A member of staff taking time off due to illness canaffect everyone, with the impact being even greater in a small companyenvironment. Often, everyone has to work harder to carry the load and moralecan be damaged, productivity dented, all of which impact the company's bottomline," said Steve Flanagan, BUPA's sales director.

 

"One solution for this is for staff to be covered bypmi and for a small company, costs for medical cover need to be controlledcarefully. With the launch of BUPAFixed Price (2 Years), companies with three or more staff will be able tomanage the pmi part of their cashflow more effectively, have more control overtheir budgets and future expenditure and ensure subscription rates remain thesame for two years. Over 32,000 small businesses look to BUPA to provide theirmedical cover and we currently pay out around 2.2m per week in claims forsmall and medium enterprises (SMEs)," he said.

 

"The introduction of a fixed price payment option tothe small company market is in response to feedback from our SME customers andfollows the successful launch of BUPA's fixed price personal scheme. It willincrease the flexibility of BUPA's pmi schemes for existing customers andprovide an attractive option for new companies wishing to enter the market. Thelaunch will be supported by a direct mail campaign and a full suite ofliterature," he said.

 

BUPA FixedPrice (2 Years) is a new payment method for BUPA's existing schemes for theSME market: Premier Network, Premier Network Max, Premier Cover, Premier CoverMax and Premier Plus. The price is fixed for each person covered rather thanthe whole group, giving companies the flexibility to expand and contract thegroup over the two-year period. It also means that:

        membership details such as a change in dependant status orremoval of members can be administered during the fixed price period

        adding members is simple - they will be allocated a pricewhich is based on the rates in force at the beginning of the fixed price period

        companies can offer different levels of cover fordifferent members of staff, for example Premier Plus for senior management andPremier Network for other managers.

 

BUPA will continue to offer its existing payment options:monthly quarterly and annually as well as its range of excesses in return forlower subscriptions.

 

Michelle Harris, company director of Leeway Limited, aChepstow based wholesale and retail butcher, said: "A fixed premium is anadvantage, because you never know what you are going to be claiming for in thefuture. So if I know what my medical insurance is costing me, whatever happensat least I know where I am with my budgets."

 

The launch of BUPAFixed Price (2 Years) is part of the company's strategy to focus on one ofthe key issues for customers in the pmi market - price. "BUPA is tacklingthis issue on two fronts: first by helping customers to budget for their futuresubscriptions through the launch of BUPAFixed Price (2 Years), and second by focusing on quality which helps drivedown pmi costs. The result is demonstrated by BUPA offering single digitcompound subscription increases to the small company market - a first for manyyears," said Steve Flanagan.

 

BUPA has various options available to suit the health careand financial requirements of both companies and their employees. For moreinformation call 08457 66 11 15. Lines are open Monday to Friday 9am to 5pm.Calls are charged at local rates.