Why have a CHT?

At its simplest, a Corporate Healthcare Trust (CHT) is a means whereby a company pays money into a designated bank account to meet the private medical fees of its members. The company normally appoints a specialist administrator to ensure best value and cost control for the company. The benefits over Private Medical Insurance (PMI) are best illustrated below:

Private Medical Insurance Corporate Healthcare Trust
CrossUnsustainable high premiums TickTypical annual savings of 10% as compared to PMI (refer to table below)
CrossUnnecessarily expensive risk charge for 400+ employees TickInsurance available at top end to protect against a high claiming year
CrossIncludes charge made by insurer to maintain FSA required solvency ratio TickEnables long term control of costs
CrossInsurance Premium Tax (IPT) currently 5%. Scheme owned by Insurer. TickNo IPT. Scheme owned by Company, with complete flexibility in scheme design
CrossFull premium taken by Insurer regardless of scheme performance TickClaims fund taken on draw down basis, any unused funds remain with the Company / Trust

Approved by HM Revenue & Customs, a CHT is the sensible option for companies with over 400 employees, for whom PMI is becoming an unsustainable cost. Under current medical inflation rates the cost of PMI will double in 7 years and double again in 13 years!

The solution is a Corporate Healthcare Trust.

Access to a panel of independent lawyers:

Correctly arranged with professional advice, a CHT is straightforward and simple. It normally works out around 10% less expensive than the equivalent insured arrangement, whilst allowing you, the employer, complete flexibility over the benefits.

Potential savings with a Corporate Healthcare Trust:

Fully Insured CHT Saving
Claims Fund £1,000,000 £1,000,000 £0
Administration Fee (aggregated) £100,000 £100,000 £0
Insurance Charge (aggregated) £100,000 £20,000 (1) £80,000
Total Net Cost £1,200,000 £1,120,000 £80,000
VAT @ 17.5% £0 £17,500 (£17,500)
Insurance Premium Tax @ 5% £60,000 £1,000 (1) £59,000 Annual Savings = £121,500
Total Gross Cost £1,260,000 (2) £1,138,500 (3) £121,500 Projected 7 year savings (4) = £1.1 million

(1) Based on the inclusion of a 125% stop loss
(2) Includes IPT charged on the whole premium
(3) Includes VAT on Administration Fee and IPT on Insurance Charge
(4) Assuming annual increases in line with market medical inflation at 10%

Corporate Branding

We would strongly recommend branding the entire scheme as the company’s own because we believe this can have a positive effect on claiming behaviour resulting in further savings.

Switch from PMI to a Corporate Healthcare Trust - calculate how much you could save


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WPA is authorised and regulated by the Financial Services Authority (FSA). The FSA website may be checked at www.fsa.gov.uk/register for WPA number 202608.