by Dermot Wells, Head of General & Health Insurance at Cornmarket Group Financial Services Ltd
Health insurance has become a cornerstone of employee benefits packages, and for good reason. Providing corporate health cover is not just about protecting employees’ physical well-being—it’s also a strategic tool for enhancing performance, engagement, and overall organizational success.
Attracting and Retaining Talent
In a competitive job market, offering health insurance helps companies stand out as an employer of choice. Employees increasingly value comprehensive benefits over higher salaries alone, and access to a robust health plan can make or break a candidate’s decision to join—or stay with—a company.
Improving Employee Productivity
Health insurance plans often include wellness programs and preventative care options, such as mental health support, fitness discounts, and routine health screenings. These initiatives reduce absenteeism, address health issues early, and ensure employees are in their best physical and mental shape to perform their roles effectively.
Boosting Employee Engagement
Employees who feel cared for are more likely to feel a strong connection to their organisation. Providing health cover signals that a company values its workforce, leading to higher morale and improved engagement.
Enhancing Employee Loyalty
A comprehensive health plan can foster a sense of loyalty among employees. Knowing that their employer is invested in their well-being builds trust and commitment, reducing turnover and the associated costs of recruitment and training.
Supporting Workforce Resilience
In times of crisis, such as health pandemics or personal emergencies, having access to health insurance can significantly reduce employee stress. This enables them to focus on their responsibilities rather than financial or medical worries, helping maintain stability within the workforce.
How Companies Can Manage Their Health Insurance Costs
While the benefits of providing health insurance are clear, it’s also a significant expense. However, with careful planning and the right strategies, companies can manage their costs without compromising the quality of the benefits they offer.
5 Simple Steps to Reduce the Cost of Company Health Insurance in Ireland for 2025
In 2025, managing costs remains a top priority for businesses in Ireland as they navigate a competitive landscape and rising expenses. One significant area where companies can optimise their spending is health insurance, which, while essential for attracting and retaining talent, can quickly become a substantial expense if not managed carefully.
The good news? There are practical steps companies can take to reduce the cost of providing health insurance without compromising on the quality of benefits offered to employees. Here’s how your business can save money on company health insurance in 2025 while maintaining a happy and healthy workforce.
- Tailor Your Plan to Employee Needs
Analyse your workforce demographics and focus on providing coverage that aligns with your employees’ actual needs. For example, younger employees might value mental health supports, while older employees may prioritize hospital coverage. Removing unnecessary benefits can significantly reduce premiums.
- Negotiate Group Discounts
Leverage the size of your workforce to negotiate with insurers for group discounts. Insurers are often willing to offer reduced premiums or enhanced benefits, such as wellness programs or maternity cover, in exchange for securing a corporate account.
- Consider Excess Options
Consider alternative plans that may include a slightly higher excess or co-payment. This reduces the overall cost of premiums for the company while giving employees access to top tier healthcare. Increasing an excess from €75 to €150 or a co-payment from €2,000 to €2,500, can yield significant savings and many such plans offer other enhanced benefits.
- Implement Preventative Care and Wellness Programs
Investing in wellness initiatives, such as regular health screenings, gym memberships, and mental health workshops, promotes healthier lifestyles and reduces long-term claims. Many insurers support companies to provide these benefits to staff through annual programs. Additionally, many plans offer money back on gym memberships, access to significant digital health supports, mental health programmes etc.
- Review and Compare Policies Annually
The health insurance market evolves regularly, with new corporate-specific plans often offering better value. Conduct an annual review of your current policy and compare it against alternatives to ensure you’re not overpaying or missing out on enhanced coverage.
Based on a fully funded company scheme with 100 employees (all aged 25+), the potential savings by finding an alternative plan with your current Insurer or by moving to an alternative provider could be between €20,000 and €50,000 per annum.
Partnering with a broker can simplify this process and uncover hidden savings.
By following the steps outlined, businesses in Ireland can save on health insurance costs in 2025 while maintaining valuable employee benefits.
Conclusion
Providing health insurance is an investment in both employees and the overall success of a business. By supporting employee health, companies can boost productivity, engagement, and loyalty. At the same time, thoughtful cost-management strategies—such as tailoring plans, leveraging wellness programs, and negotiating group discounts—can make health insurance affordable without sacrificing quality.
In 2025, the challenge is not whether to offer health insurance, but how to maximise its value for both employees and the business. With proactive management and smart planning, companies can achieve this balance, ensuring a healthier workforce and a healthier bottom line.
