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BIK Group health insurance policy

BIK Group health insurance policy Employee splits unfairness

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Hi

We have a small group policy health insurance paid by our company and the BIK is split amongst the named Employees according to the insurance premiums shedule within that policy. 

Lets say we have one older person (70) and one younger person (52) in that policy. 

The premiums for the older person are more expensive for the younger person. Presently ~ 150 / 350 pcm. 

Now the younger person is having a major cancer claim. And the group policy health insurance renewal reflects that by increasing the premiums across the whole group (this year by 55%) so the older person will now be paying tax on ~£550 pcm. Double that as this employee is married. How very embarrassing for the claimant who will be paying tax on ~£232.00 pcm per person. Also married and doubled. 

Notwithstanding discussing the morals of this type of insurance policy (in play 20 years) my question is can the employees split the BIK between them in a fairer way or even a 50/50 split so the tax implications are fairer in this or in any case? 

Thank you  

 

Replies (5)

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ALISK
By atleastisoundknowledgable...
05th Dec 2019 07:58

No

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Replying to atleastisoundknowledgable...:
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By Kevin KashGone
05th Dec 2019 08:47

Lol.

Thanks. I suppose it was a ‘binary’ question and I got a binary answer. !!

Maybe the answer doesn’t reflect well on your nick name though.

Appreciate your response.

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Replying to Kevin KashGone:
ALISK
By atleastisoundknowledgable...
05th Dec 2019 10:31

Kevin KashGone wrote:

Maybe the answer doesn’t reflect well on your nick name though.

Doesn’t it? A confident answer sounds knowledgable does it not?

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By paul.benny
05th Dec 2019 08:04

Group schemes typically offer savings in premiums compared with retail prices. The corollary is that a claim by one member can push up the premiums for the rest of group - but they may still be lower than retail rates.

You could approach your broker or insurer to see if there is any way of mitigating the increase - for example by restructuring the scheme or changing provider.

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Replying to paul.benny:
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By Kevin KashGone
05th Dec 2019 08:45

Thanks Paul. The broker is on the case. The claim is still in play.

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