UK businesses face a £1.1billion bill for private medical benefits over the next 5 years according to a report from Buck & Willis Healthcare.
The £1.1bn bill represents a 70% rise in the cost of employee healthcare. The company is predicting an increase of £380 per employee for companies with 100 or more employees.
Adrian Norris, Buck & Willis Healthcare managing director said: "Employers need to take action now to prevent the cost of medical benefits escalating out of control, or the existence of company medical plans could be threatened, compromising an important aspect of any employer's benefit package and health management programme.
"These spiralling liabilities could see medical plans going the same way as `final salary' pension schemes. Most employers are responsible for 100% of the costs of a typical medical plan, yet it's impossible for companies to know exactly what their liabilities and costs will be from year to year.
"At the same time, the employee receiving the benefit has little or no understanding of its value, and often plays no role in deciding how the money is going to be spent."
