– minimum of 75% of staff must participate
– employer fully subsidises base cover
– employees, including contractors, directors & business owners can pay to add options
– the offer must be accepted within 90 days of receiving a proposal to secure the pre-existing conditions benefit

– up to $300,000 for private hospital surgical costs
– up to $200,000 for private hospital medical (non-surgical) costs, including cover for cancer treatment
– specific major diagnostic tests included
– mole removal, ACC top up, obstetrics and more

– add family members
– reduce excess
– specialist consultations & diagnostic procedures
– lump sums for trauma conditions
– day to day GP option (no excess)
– dental & optical (no excess)
– proactive health benefits (no excess)

Does this incur fringe benefit tax (FBT)?
The IRD allows up to $1,000 per employee per year for this type of benefit before FBT is payable. So, in most cases there will be no FBT payable.  You will only have to pay it if you’re already giving certain types of benefit (like life insurance, death or funeral funds or certain kinds of super/pension benefits – not including Kiwisaver) to a staff member where this exceeds that $1,000 cap. If you do need to pay FBT on these benefits then you will also need to pay GST on them.

Who is the insurer?
The policy is provided by nib.

What’s covered?
There is a summary of the policy benefits along with a copy of the full policy document and a fact sheet on the insurer’s website: https://www.nib.co.nz/health-hq/premier-health-business.

How does it compare to other health insurers?
While all corporate/group policies differ across different insurers ours represents a broad range of benefits that cover the big expenses such as surgical and medical hospital treatment. Check out the latest Canstar ratings: https://www.canstarblue.co.nz/banking-insurance/health-insurance/ (nib was second in 2017).

Is it worth it?
That’s only something you can decide. We’ve secured very competitive rates and excellent cover for members. We also know that holding on to and attracting staff is a constant challenge, particularly in areas where there is a shortage of good tradies. An employer who offers health insurance is more likely to be seen positively by workers, and with pre-existing conditions included for themselves (and their family members if they choose to add them) it has a high perceived value as a benefit.

The cost to recruit and train a new staff member has been estimated by Hays Recruitment at between $1,800 – $2,500, including the loss in productivity as they get up to speed, so it makes sense to invest to retain good staff. If an employee leaves they will lose their health insurance benefits too, another reason to stay.

Finally, if an employee does need treatment, going through the private system generally means they can be back to work quicker, reducing the cost of temporary staff and improving productivity.