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Health insurance benefits ‘could be cut as part of cost reduction measures’


More employers could find their company’s health insurance benefits are reduced as businesses try to save money.

According to a report in the Independent, a number of firms are looking for ways to cut back on their expenses and limiting employment packages is one area to do this.

It noted that entitlement to company sick pay schemes is being restricted and private health insurance benefits are being made less generous.

Aviva Healthcare’s Mark Noble stated: “A lot of small corporates are keeping private medical insurance but downgrading it.”

Despite fewer employees benefiting from private health insurance, the article noted that absence rates are at their lowest rates since 1982, according to recent findings from the Confederation of British Industry.

This news comes after principal research fellow Dilys Robinson at the Institute for Employment Studies suggested that government spending cuts are affecting the morale among workers in the public sector, leaving many employees feeling “demotivated and unvalued”.

Posted by Hayley Edwards

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