For financial adviser use only. This information has not been approved for use with customers. If you are a customer please go to www.aviva.co.uk/health-insurance.

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Private Medical Trusts

Helping cover the costs of healthcare through Trust schemes

A Private Medical Trust could be beneficial for clients who have around 500 employees or more.

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Essentially, a Private Medical Trust is a ‘pot of money’ that can be used to cover eligible medical expenses incurred by employees. Your client – the business – makes payments into the fund. We administer it on their behalf and look after claims assessments, payments and the paperwork involved. Because the business sets the rules of the Trust, it has complete control and choice over the type and range of healthcare benefits provided.

The largest Private Medical Trust we look after covers 19,000 employees and has been successfully managed by us for over 17 years. Private Medical Trusts are becoming increasingly attractive to companies with 500 employees or more – largely due to a combination of reduced administration, and potential savings as a result of a Private Medical Trust’s structure. Because the Trust is not an insurance contract, it does not incur Insurance Premium Tax (IPT), which will increase from the current rate of 6%, to 9.5% as of November 2015. Please note that tax rules may change in the future.

How does a Private Medical Trust work?

Your client chooses which type of Trust to set up:

  1. a non-discretionary Trust, which is fully funded by the employing company, or
  2. a multi-contribution Trust, which allows for voluntary contributions from members of the trust (employees).

It may be quite daunting for your client if they've never set up a Private Medical scheme this way, so we recommend they take legal counsel about the process.

We then carry out the administration on behalf of the fund's Trustees in return for an administration fee. Your client's company makes payments into the fund, and those monies are used to cover eligible medical expenses incurred by members of the Trust. A dedicated account management team provides all the day-to-day support needed, whether it's sending out new member packs; assisting with queries on taxation; or contributing to the analysis of Management Information in meetings with Trustees and Group Administrators.

What are the advantages of a Private Medical Trust?

With us managing the membership on your client’s behalf, there’s a long term reduction in the administration your client needs to undertake. Alternatively, clients can manage the membership themselves. In either case, we’ll implement a personalised claims service that can help people to return to work as soon as possible.

Our partnership offers access to healthcare experience and medical expertise, which could help employees improve their health and wellbeing and – as a result – improve productivity across the business. Our services can help them return to work quickly after a period of ill health.

We can help to raise awareness of Aviva’s relationship with your client. Through a Private Medical Trust partnership, we can promote services such as access to a 24 hour GP helpline and discounts on travel and motor insurance, which could help to enhance your client’s profile and perception among employees.

And of course, probably the most attractive benefit of taking out a Private Medical Trust is that it doesn't incur Insurance Premium Tax (IPT), which will help to save your clients money.

This document will explain in more detail how the product works and can be used with your clients

Private Medical Trust (PDF 5730KB) – client-facing pre-sale brochure.

WC00843 09/2015

Can we help you?

Think of us as part of your team. For help or queries, call us on:

023 8031 1830

9.00am – 5.00pm, Monday – Friday

For policy quotes, please email: ISTRUST@aviva.co.uk

Calls to and from Aviva may be recorded and/or monitored

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