Compare Business Healthcover
How much does business health insurance cost in the UK?
How much UK business and SME group health insurance costs: there is no universal price. Age, headcount, cover, excess and hospital list drive the premium. Get a current quote.
Written by Compare Business Healthcover. Last reviewed September 2026.
There is no universal price. Group private medical insurance is priced on the people on the scheme and the benefit design. A young two-person professional firm will not pay the same as a mixed-age team of forty on comprehensive outpatient cover. Anyone quoting a single “£X per employee per month” without ages and cover level is marketing, not quoting.
How much does business health insurance cost?
A broker prices your actual dates of birth, occupations, postcode and chosen cover — not a website average. Treat “from £X a week” adverts as a floor for a young, tightly designed, non-London scheme. For a working budget, ask for two like-for-like quotes: inpatient-only and comprehensive outpatient, same excess, same hospital list. Compare Business Healthcover does not publish invented price ranges.
What affects the price?
Age is usually the strongest driver, then headcount (small groups pool less risk), then how rich the cover is. Location matters because hospital lists and consultant fees differ, especially in and around London. Insurer appetite for your trade and, at renewal, claims history also move the number.
| Factor | Why it changes the premium |
|---|---|
| Employee ages | Oldest and average age dominate small schemes |
| Number of employees | Fewer lives means less pooling; two-life quotes are sensitive |
| Location | London and some regional hospital lists cost more |
| Cover level | Inpatient-only is cheaper than full outpatient |
| Excess | A higher excess usually lowers premium |
| Hospital list | National / central London lists cost more than local lists |
| Outpatient cover | Consultations, diagnostics and therapies add cost quickly |
| Mental health cover | Often an add-on or inner limit — check the wording |
| Dental / optical options | Usually extras, not core PMI |
| Underwriting | Moratorium vs full medical underwriting can change price and exclusions |
| Claims history | At renewal, a poor claims ratio often loads the premium |
| Insurer | Panels and appetite differ; the cheapest logo is not always the right list |
What about cost per employee?
Dividing last year’s total premium by headcount is a rough internal budget line, not a market rate. Adding one older joiner, moving to a London hospital list, or unlocking outpatient diagnostics can swing the “per head” figure more than hiring two young staff. Compare total scheme cost on a like-for-like design.
Ways companies may reduce premiums
None of these is a guaranteed saving. They change the product. A cheaper premium with a restricted hospital list in your region can cost more in practice if staff cannot use it.
- Raise the excess if the business can fund small claims
- Choose inpatient-only if outpatient is unused
- Use a regional hospital list if you do not need central London
- Drop unused extras (dental, optical, travel add-ons)
- Re-broke before renewal rather than only accepting the incumbent
- Keep membership data accurate so you are not paying for leavers
Tax is not a discount on the premium
Corporation tax treatment and employee Benefit in Kind are separate from the insurer’s price. Confirm both with your accountant. The tax page is an outline, not a calculation.
How to get a real figure
Submit company size, location and the cover you want. We introduce FCA-regulated broker partners who quote your people. There is no obligation to buy. We do not run a fake instant calculator.
Frequently asked questions
How much does business health insurance cost?
It depends on ages, headcount, cover level, excess, hospital list and underwriting. There is no honest single UK figure. Compare like-for-like quotes rather than advertised “from” prices.
How much is health insurance per employee?
Per-head averages hide age mix and benefit design. Use them only as an internal budget split after you have a real scheme quote, not as a shopping price.
Is group cover cheaper than everyone buying individual PMI?
Often, once several lives are on one scheme — but not always for two older directors. Compare both if the group is tiny and high-age.
Will the premium go up at renewal?
Often, even with no claims, because of medical inflation. Claims on your scheme can add more. Start comparing 8–12 weeks before the renewal date. See the renewals guide.
Related: Business health insurance · Small company · Two employees · What cover includes · Tax · Renewals