Medical Care Direct Health Link
Medical Care Direct’s Health Link is a healthcare trust fund for firms with as few as 100 employees. Previously such schemes have tended to be the province of 1,000+ schemes, due to the cost and complexity of their set up.
The scheme includes comprehensive third party administration, MCD’s unique Treatment Sourcing Service and stop loss insurance in one fixed price package.
MCD says that healthcare trusts can offer employers savings of up to 20% a year when compared to PMI. Partly that is because, except for the stop loss premiums, payments into the scheme do not attract Insurance Premium Tax—which went up from 5% to 6% on 4 January—while the VAT payable on the administration charge is recoverable. Trustee services are provided through fellow Skipton Group company, Pearson Jones plc.
Plus points: Healthcare trust benefits for smaller employers; Experienced player that is part of a big financial group; Flexibility to tailor benefits; If claims are less than the trust fund, the surplus is simply retained and reduces future costs.
Not so plus points: Are healthcare trusts tax avoidance?; Few would now argue that, which begs the question for many: why have PMI for a big group scheme?
Website: http://www.medicalcaredirect.co.uk.
Rating (max 10): Innovation: 8. Overall: 8. Gold.