Category: Health benefits · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10
Group private medical insurance (group PMI) is an employer-sponsored insurance covering employees, and at the employer’s option their families, for the cost of private acute medical treatment. Cover typically includes in-patient and day-patient consultations, surgery and diagnostic procedures; outpatient consultations and tests; and at varying levels mental health treatment, therapies, dental and optical benefits.
Category: Health benefits Also known as: Group PMI, corporate health insurance UK market: approx. £4bn premium (2024 ABI data) Related concepts: Group PMI, Healthcare cash plan, Employee assistance programme
Group PMI is distinguished from individual PMI by its multi-life underwriting (members are covered on a moratorium or medical history disregarded basis without individual underwriting) and by the employer’s role as policyholder. Premium is determined by scheme demographics, claims experience and benefit design rather than by individual health status.
Group PMI is regulated under the FCA Handbook ICOBS as a class of general insurance distribution. Tax treatment: the employer’s premium is deductible for corporation tax purposes; the cover is a taxable benefit in kind on the employee under ITEPA 2003 (reported on form P11D, or payrolled), with NIC payable by the employer (Class 1A). The premium itself is subject to Insurance Premium Tax at the standard rate (12% from 1 June 2017).
Standard cover includes in-patient and day-patient hospital costs (surgeon’s, anaesthetist’s and hospital fees), outpatient consultations and diagnostics up to a defined limit, and a hospital list defining where treatment is covered. Enhanced cover adds mental health treatment, complementary therapies, dental and optical, and overseas cover for short-term travel.
A 75-employee firm provides group PMI on a moratorium-underwritten basis with £2,000 outpatient limit, full in-patient cover, and a mid-range hospital list. An employee referred by her GP for an MRI scan and orthopaedic consultation accesses both through the insurer’s directory of providers, with the costs paid direct to the providers by the insurer. Premium is approx £1,200 per employee plus IPT.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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