Healthcare Trusts vs Medical Insurance

Once covered by an insured scheme all eligible claims are met within the agreed premium.

This means that insured scheme benefits and premiums are set to achieve sufficient margins to cover all expected claims, taxes*, levies**.

As a healthcare trust is not an insured scheme, it is not subject to the taxes, levies and profit requirement of the insurance company. There is just a charge from the specialist healthcare administration company for their services to the trust.

Benefit level for beneficiaries are determined by the trustees.

All claims are met from the contributions of the owning company of the trust to the trust fund.

The trustees, usually guided by a specialist healthcare administration company agree on the level of contribution to the trust fund by the owner of the trust to meet expected claims. The level of contribution may vary dependent on the level of claims.

Summary

For a well run trust scheme the overall cost of providing employees or members with Healthcare benefits may be much lower than an insured Scheme with similar benefit levels.