How a health cash plan works
You pay a monthly premium. When you have everyday healthcare — a dental check-up, new glasses, a course of physio — you pay the bill, then claim back some or all of it, up to the annual limit for that type of treatment. Limits usually reset every year.
Most providers offer several levels. The higher the level, the higher the premium and the more you can claim back.
What's typically covered
- Dental — check-ups, hygienist visits and treatment, including NHS charges
- Optical — eye tests, glasses and contact lenses
- Therapies — physiotherapy, osteopathy, chiropractic and sometimes acupuncture
- Consultations and scans — money back towards a private specialist consultation or diagnostic scan on some plans
- Hospital stays — a small cash amount per night as an in-patient
- Extras — many plans include a digital GP service, employee assistance or mental health support lines
Cash plan vs private medical insurance
| Health cash plan | Private medical insurance | |
|---|---|---|
| What it's for | Everyday costs: dental, optical, therapies | Private diagnosis and treatment of new conditions |
| How it pays | Pays you back up to fixed limits | Pays the hospital and consultant, often in full |
| Covers surgery or cancer treatment? | No — at most a small cash benefit | Yes, subject to your policy |
| Medical history | Often doesn't matter | Pre-existing conditions usually excluded |
| Cost | Usually low | Higher, and rises with age |
Who a cash plan suits
- People who spend regularly on dental care, glasses or physio
- Anyone who wants some help with healthcare costs but can't justify the cost of private medical insurance
- People with a medical history that private medical insurance would exclude
- Employers looking for a low-cost staff benefit
Using both together
Some people pair a cash plan with a lower-cost private medical insurance policy — for example, a policy with limited out-patient cover or a higher excess — using the cash plan for everyday costs and the insurance for bigger events. A specialist can help you find the right balance. See also our dental insurance guide.
Questions and answers
What is a health cash plan?
A health cash plan is a policy that pays back some or all of the cost of everyday healthcare, such as dental check-ups and treatment, eye tests and glasses, physiotherapy and other therapies, up to annual limits for each type of treatment. You pay a monthly premium, pay for your treatment, then claim the money back.
Is a health cash plan the same as health insurance?
No. Private medical insurance pays for private diagnosis and treatment of new acute conditions, such as surgery or cancer treatment, which can cost thousands of pounds. A cash plan pays back smaller, everyday costs up to fixed limits. Many people have both, or choose a cash plan because it's cheaper.
How much does a health cash plan cost?
Cash plans are usually much cheaper than private medical insurance, and most providers offer several levels — the higher the level, the more you can claim back each year. The price doesn't usually depend on your medical history, and some plans don't vary much by age.
Do health cash plans cover pre-existing conditions?
Many do, because they pay back fixed amounts for routine care rather than insuring against large risks. There are often waiting periods before you can claim for some benefits. Check the details of the specific plan.
Can my employer provide a health cash plan?
Yes — cash plans are a popular, lower-cost employee benefit. Like other employer-funded health benefits, they're usually a taxable benefit in kind. See our business health insurance guide for more on how company health benefits are taxed.
Insurers worth comparing
Further reading
- Self-Pay vs Health Insurance: Which Is Cheaper for a One-Off Procedure?
- Virtual GP Apps Explained: What You Actually Get With 24/7 GP Services