How Much Does Business Health Insurance Cost? (2026)

Offering health cover to your team is one of the most valued benefits going — but employers understandably want to know what it’ll cost before they start. There’s no flat price, but the factors that drive it are straightforward.

What drives the cost

• Number of employees — more people means more premium, but often better value per head.
• Ages — an older team costs more than a younger one, all else equal.
• Location — treatment costs (and therefore premiums) vary around the country.
• Level of cover — hospital lists, outpatient limits and extras all move the price.
• Excess and options — a modest excess or guided hospital list brings the cost down.

Underwriting: how it’s set up

Smaller schemes are often set up on “moratorium” terms; larger ones can use “medical history disregarded” underwriting, where employees are covered without declaring their history. The right approach affects both price and simplicity.

The tax and value side

Group health insurance is usually a P11D benefit in kind for employees, with the employer paying Class 1A National Insurance. Set against reduced sickness absence and its pull as a recruitment and retention tool, most businesses find it earns its keep.

The real question isn’t just what a scheme costs — it’s what losing a key employee to a long waiting list costs you.

Get a real number for your team

We compare group cover across the whole market, structure it for the best value for your team, and manage it and its renewal each year. Ask us for a business comparison — it’s free and there’s no obligation.