Axa Healthcare reduces its own medical cover for staff
AXA PPP, the UK health insurer, has decided to reduce the amount of private healthcare provision it gives its own employees.
As part of a consultation process with its workforce, the group is introducing restrictions to its cover to make it less costly.
It has told employees the new cover will incorporate a so-called six week rule, which means that employees will only be able to make use of the private provision if they can not get their medical condition treated on the NHS within six weeks. Such a policy naturally reduces the cost of the cover significantly.
A spokesman for Axa said yesterday the lower cost policy replicated a scheme offered first by Axa to other businesses almost 30 years ago.
“This policy is a way of enabling us to offer a lower cost scheme,” the spokesman said.
The group is also withdrawing in hospital psychiatric care for its employees.
Axa PPP says it has agreed the new health cover with its 1,800 employees after a series of consultative meetings.
But One insider told City A.M: “To reduce my health cover while I sell and administer more expensive policies to smaller and less profitable companies is outrageous.”
In addition to the reductions in the healthcare benefits, employees have also been asked to choose between one of the following: a reduction in pay; an increase in working hours; or a 50 per cent reduction in the annual bonus payment. The cost cutting measures are to apply for a three year period.