Is it worth adding optical coverage to your business health insurance?

You can provide your employees with health insurance by investing in a group health insurance plan that covers every staff member. Your business can pay the premiums, or you can establish a voluntary scheme where employees pay the premiums if they choose to join.

A business health insurance plan typically includes core coverage, which you can tailor by adding extra coverage, such as optical coverage, to provide a more comprehensive policy.

Optical cover is typically only available as an optional extra on your business health insurance. If you choose to add it, you must pay an additional premium. Insurers typically bundle optical coverage with other services, such as dental or hearing coverage.

Adding optical coverage to your business health insurance has various benefits. Comprehensive employee health insurance can make you an employer of choice, help you retain employees and attract top talent.

Here are a few of the other advantages optical cover can provide.

It helps your employees save money

The NHS provides free eye tests and assistance with optical costs to patients who meet the eligibility criteria based on their age, medical history, family medical history, or receipt of certain benefits.

Otherwise, they must pay for their eye tests, prescription glasses and contact lenses. Providing optical coverage saves them the expense and makes it more likely they'll attend regular check-ups.

It can be a cost-effective way to meet your duty of care

If your team regularly uses display screen equipment, you must provide eye tests and glasses if employees need them for display screen work. Optical coverage can be a cost-effective way to meet your legal duty and provide your employees with glasses or contact lenses if they need them for other reasons.

It can help identify other health issues

Regular eye health check-ups identify changes in employees' vision, but they can also detect the early signs of other health issues. Check-ups can help identify issues with eye health, such as glaucoma or cataracts. However, changes in the eyes can indicate high blood pressure, cardiovascular problems or diabetes and help employees seek treatment to manage or reverse their condition.

It reduces absenteeism

Taking care of your eyes and having regular check-ups can help identify potential health issues. Your employees can seek treatment before symptoms worsen, potentially reducing their sickness absence.

Research also suggests that people who have regular eye checks have a better quality of life, a lower risk of depression and physical injuries due to falls as they age. Providing health insurance that helps your employees care for their vision can ultimately lead to a healthier life in the long term.

Optical insurance is often a packaged service

Insurers typically provide optical cover as part of a package, giving you additional benefits for your money. Optical and dental coverage also includes dental check-ups and care, as well as emergency dental treatment.

Some providers offer packages that include coverage for optical, dental, and hearing services.

Many health insurance companies offer optical coverage as an optional extra. However, some only provide it as a cash plan, which operates slightly differently from health insurance.

Here, we explain the tests and services you'll usually find with optical coverage, and how cash plans work if you decide to add one.

Eye tests

Policies typically cover routine eye tests. Review your policy documents to confirm whether it covers the test. Some only provide glasses and contact lenses, meaning you must pay for eye tests separately.

It's also worth checking whether the check-ups include advanced scans, such as Optical Coherence Tomography (OCT) scans, which provide a more in-depth examination of your eye health.

Glasses and contact lenses

Optical cover generally includes prescription glasses and contact lenses if your employee needs them for the first time, or if their prescription has changed since their last check-up. Cover levels vary depending on your chosen policy and provider, providing employees with an annual allowance towards their glasses. Many policies also have an excess, meaning your employees must fund part of the cost themselves.

Cash plans

Some policies offer optical coverage that works like a cash plan. Health cash plans operate differently from health insurance, allowing employees to claim cash back on their regular health expenses.

Cash plans have annual limits on the expenses employees can claim in each category. Some offer different terms depending on the optician used. For example, Vitality pays 100% of the cost for appointments with Vision Express, but only 80% of the cost for appointments with other opticians.

All private health insurance policies have exclusions, meaning they don't cover every type of treatment. Policies have standard exclusions and others that vary depending on your medical history.

Here's how exclusions work for optical cover.

Policy exclusions

Standard policy exclusions apply to cosmetic procedures or treatment you choose to have for lifestyle reasons. For example, some providers exclude laser eye surgery. Your private health insurance typically doesn't cover non-prescription glasses or eye drops purchased over the counter.

Pre-existing and chronic conditions

Health insurance excludes pre-existing and chronic conditions. Chronic eye conditions, such as glaucoma or macular degeneration, require ongoing monitoring and management by an optician or consultant.

If an employee had eye problems in the five years before joining the policy, these are classed as a pre-existing condition and will be excluded. However, if they stay symptom-free for the first two years of coverage, they can be included later. Some insurance companies make exceptions for eye check-ups and tests, so be sure to review the small print to see what exclusions apply.

Adding optical coverage to your employee health benefits could have tangible advantages for your business. At Globacare, we help our clients choose the best health insurance for their needs and budget. Contact us for personalised advice tailored to your business.