When MHD underwriting is worth it's weight in gold

Suppose you've invested in a group health insurance policy to provide you and your employees access to private healthcare. In that case, you may be able to choose medical history disregarded (MHD) underwriting for your policy.

As the name suggests, group health insurance covers multiple people, so it's ideal for businesses that want to provide health insurance as an employee benefit. Most policies exclude pre-existing medical conditions, but one with MHD underwriting doesn't. Health insurers define a pre-existing condition as anything an employee sought medical advice or treatment for in the five years before joining the policy. When you choose MHD underwriting, the policy will cover pre-existing conditions so your employees can receive treatment regardless of their medical history.

Aside from MHD, there are two main types of health insurance underwriting: moratorium and full medical underwriting. Both types exclude pre-existing conditions but operate in different ways.

Pre-existing conditions are typically excluded for the first two years of coverage. For example, if your employee had physiotherapy for a bad back before they joined the policy and needs more afterwards, their insurance won't cover it. However, if they start experiencing pain in their hip or knee, they can use their health insurance to get treatment as it's a new condition.

Your insurer can remove the exclusion if an employee has a pre-existing condition but stays symptom-free for the first two years of coverage.

The main difference between moratorium and full medical underwriting is the information employees provide when they join the policy and how that impacts the claims process.

Moratorium underwriting

If you choose moratorium underwriting, your employees won't need to provide any medical information when they join the policy. Instead, if they claim on the policy to access treatment, your insurer will investigate to see if an exclusion applies. This can mean the claims process takes longer while these checks take place.

Full medical underwriting

With full medical underwriting, your employees complete a medical questionnaire when they join the policy. This means extra paperwork, but the claims process is typically quicker because everyone knows what's covered from the start. It can also make premiums cheaper.

MHD underwriting is only available on group policies and not individual health insurance. Most group policies offer coverage for businesses with two or more employees. However, MHD is typically only offered to companies with more than 20 employees, meaning it likely won't be available if you have a smaller business.

If your business has enough employees to be eligible for MHD underwriting, the main drawback will likely be the cost. Health insurers assess insurance premiums based on the risk that someone will claim. The risk and cost will be reduced if they can exclude pre-existing conditions. However, if you provide health insurance that lets employees access treatment for something they've had before, the risk increases, and so will your premium.

Changing your health insurance provider can be difficult, especially if you want to keep the same terms and conditions and avoid new exclusions. However, you might signup with an insurer and discover that the service doesn't meet your expectations. Each insurer assesses risk differently. You may seek a quote from a new insurer but find they aren't willing to offer MHD based on your claims history or other risk factors.

It's also worth remembering that even policies with MHD underwriting won't cover everything. Every medical insurance policy has standard exclusions such as straightforward pregnancy, cosmetic surgery and treatment for addiction. Medical insurance also excludes chronic illnesses such as asthma or high blood pressure.

While MHD underwriting has some downsides, it can be worth its weight in gold if it's a good fit for your business and employees. Here are a few reasons to consider investing in a private medical insurance policy with MHD underwriting.

You want to attract the best talent

Private health insurance is a highly valued employee benefit as it gives your team quick access to high-quality private medical treatment without spending time onan NHS waiting list. MHD underwriting gives the best possible access to treatment as your policy covers all pre-existing conditions.

It can also help your business to be more inclusive. While employees with long-term, chronic health conditions still need NHS care, health insurance can provide treatment for flare-ups or support through telephone helplines or self-help resources. These can be valuable to people returning to the workforce or changing jobs after illness or injury.

You have older staff

It's an unfortunate fact of life that most of us face an increased risk of ill health as we age. Employing older staff gives your business the benefit of their experience and knowledge but also carries a higher risk of age-related illness.

Choosing MHD underwriting means you can provide your existing staff with excellent health coverage, but it also lets you recruit new, experienced employees without worrying about their medical history. They can use their health insurance to access exclusion-free treatment and take less time off work.

Your staff have complex medical histories

We've mentioned that MHD can help you be more inclusive when recruiting, but the same principles apply to your existing employees. Workers with complex medical histories will likely experience more delays while insurers investigate their records for potential exclusions. They may also face significant exclusions, meaning they don't get the full benefit from their health insurance.

While health insurance doesn't cover chronic illness, most policies will cover treatment for a flare-up in symptoms, provided your employee received their diagnosis after they joined the policy. Otherwise, a flare-up before they joined the policy could be classed as a pre-existing condition and excluded. MHD lets you provide coverage in those circumstances regardless of when symptoms started.

Your industry involves heavy physical work or significant stress

If your work involves heavy manual labour, your employees face an increased risk of musculoskeletal conditions or injuries. Stressful professions also come with a high risk of burnout and other mental health issues.

Health insurance lets them access quick treatment to address these illnesses early and prevent long-term damage. However, MHD gives you the added benefit of being able to recruit experienced employees who may have experienced health issues with their previous employers while still providing them with the treatment they need.

For example, an employee may regularly receive private physiotherapy to treat aback problem using health insurance their current employer provides. They wantto change jobs, but this would mean losing access to their treatment and joining an NHS waiting list. MHD allows you to offer them a job where they can continue treatment, even if it means switching to a different provider. This approach also lets you offer work and excellent health coverage to people who've been made redundant.

You want to save time on paperwork

If you have full medical underwriting, employees must complete a medical questionnaire when they join, adding extra paperwork to your onboarding process. Alternatively, if you choose moratorium underwriting, you may need to deal with absence reports and medical certificates depending on the length of any sickness absence.

MHD underwriting eliminates the need for some paperwork by reducing the forms you and your employees must complete when joining. While you may not be able to eliminate all your absence reporting procedures, quick access to treatment without any exclusions should help reduce the burden.

Employee confidentiality is important to you

The information an employee shares with your health insurance provider remains confidential, as your insurer won't disclose any personal medical information to you without your employee's consent. However, depending on the nature of their absence and the treatment they need, your employee may eventually need to share details of their pre-existing conditions with you.

For example, say your employee needs surgery for carpal tunnel syndrome that prevents them from working. Your health insurance covers in-patient treatment, including surgery, so you assume they'll book the necessary appointments and be back to work within a few weeks. However, this doesn't happen, so their manager and your occupational health department contact them to stay in touch and find out how they are and when they're likely to be fit for work. As a result of this process, they feel obliged to reveal that they had non-surgical treatment before joining your company, so they must wait to have surgery at an NHS hospital. With MHD, this doesn't happen; they can use their health insurance for treatment.

At Globacare, we help you choose the right private health insurance for your business so you can protect your team and get superb value for money. Contact us today for specialist advice tailored to your needs.