Beruflich Dokumente
Kultur Dokumente
While the PMI market continues to display remarkable resilience, many of our clients are not
immune from the harsh realities of the current economic climate. At PruHealth we believe a crucial
factor in our success to date is our ability to react quickly and innovatively to feedback from the
market.
The majority of the feedback we’re receiving at the moment focuses on the fact that employers are
willing to take on lower levels of employee rewards in exchange for sharper premiums and lower
rates of medical inflation.
Based on this feedback we’ve looked at our pricing strategy, a key element of which is the careful
balancing of rewards available to employees and the premiums paid by the employer.
As a result of this rebalancing combined with several product changes, we are pleased to
announce market leading average half year and annualised rate increases for SME business.
Partner changes
Benefit changes
Process changes
Champneys
Why the change: The current benefit is structured in such a way that
Champneys hold availability in excess of what is being used. Limiting usage
from our side allows Champneys to free up capacity without compromising
PruHealth availability. We’re simply aligning with historical usage patterns.
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
Fitbug
Detail: A new look Fitbug will be introduced in June. New features include an
alarm clock, total exercise time and aerobic time recorder, as well as an active
speed feature which provides an indication of the intensity of the exercise.
A bulk deal for certain Corporates (clients with more than 100 employees) will
be available - £25 per member.
Why the change: Since the introduction of Fitbug 3 years ago we’ve not
increased prices, choosing to absorb the effect of inflation rather than passing
it on to our members. This remains one of the best ways to move through the
statuses.
Even at £30 members are still getting great saving on the RRP of £84!
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
Cineworld
Only 1 pair of 2-for-1 tickets may be purchased per member per month via the
Member Zone.
Cineworld Unlimited Card holders are not eligible for this offer.
The free ticket must be used at the same screening as the paid ticket.
Effective date: Available to all new business from 10 July 2009 and existing
PruHealth members at renewal.
Nuffield Health
The Diagnostic Clinic
road to health
Boots
A member therefore may be subsidised for 2 basic screens, or, 1 basic screen
and 1 full screen.
Members may still have more than 1 full screen per year, however we will only
subsidise 1. Should a member wish to have a second full screen during the
policy year they will have to pay the full retail price.
Points for screens remain the same: 400 points for a full screen; 200 points for
a basic screen.
The maximum number of points that can be earned through the entire
Screening category remains unchanged as well at 800 per year.
Why the change: Having more than 1 full screen per year is not proven to be
clinically beneficial. Therefore we’ve tightened the rules to maintain the
integrity of the product and avoid situations where a member might undergo an
unnecessary screen simply to earn points.
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
Nuffield Health
The Diagnostic Clinic
Detail: Current prices for Nuffield Health and The Diagnostic Clinic screens
are set out in the table below. New prices are in red.
Member price
Retail
price
Bronze Silver Gold Platinum
Basic screening
The Diagnostic Clinic £150 £50 / £60 £30 / £50 £15 / £40 £5 / £30
Nuffield Health – Vi3 (female) £265 £160 £120 £70 / £75 £15 / £40
Nuffield Health – Vi4 (male and female) £225 £160 £120 £70 / £75 £15 / £40
Full screening
The Diagnostic Clinic £500 £250 £175 £100 / £110 £25 / £55
Nuffield Health – Vi5 (male) £430 £250 £175 £100 / £110 £25 / £55
Nuffield Health – Vi5 (female) £455 £250 £175 £100 / £110 £25 / £55
Nuffield Health – Vi6 (male) £590 £375 £275 £175 / £185 £75 / £100
Nuffield Health – Vi6 (female) £605 £375 £275 £175 / £185 £75 / £100
Why the change: We’ve never adjusted the pricing of our health screens.
Now that we are making a change, we’re restricting where possible, increases
to the higher statuses. We’ve done this to ensure that the cost barrier for
members on Bronze and Silver remains as low as possible.
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
BENEFIT CHANGES
Rehabilitation benefit
Summary: From 1 July 2009 the benefit for rehabilitation will be 30 days.
Why change: To bring ourselves into line with the rest of the market.
Effective date for GROUPs: Applies to all new GROUP business from 1 July
2009 and existing PruHealth members at renewal.
Vitality Review
Summary: From 1 July 2009 members will need to complete their Vitality
Review in order to unlock next year’s renewal reward.
Detail: We will not pay out cash back or increase a member’s PHF in the 2010
renewal cycle unless they have completed their Vitality Review.
Why the change: We have some members who do not engage with Vitality at
all and yet still receive a cash back reward. Rewarding inaction undermines
our whole philosophy – Vitality was set up to reward people for the effort they
make to look after their health. We will no longer ‘waste’ incentives on people
who do nothing.
The Vitality Review was designed as the first step on the road to full
engagement. Starting in 2010 we will only reward those who make the effort
to take that first step.
Driving members to complete their Review will not only help drive
engagement, it will also promote our online functionality.
Detail: Prior to this year’s cash back payment members will be notified that an
electronic payment option is available and that they can either log on the
Member Zone or call us to provide their bank details.
When it comes time to pay the cash back, we’ll do so electronically. Initially, to
smooth the transition, we’ll send a cheque automatically if we have not
received any bank details.
Why the change: Paying by electronic funds transfer rather than sending a
cheque is a cleaner, quicker and more efficient way of distributing the cash
back. There is less room for error or delay.
New business details: Groups will be quoted on our new standard renewal
reward levels which are lower than the current levels.
This will soften the impact of the half year rate increase, in effect reducing the
increase by 3%.
Groups will still choose their renewal reward – an increase to the Personal
Health Fund or cash back.
If no decision is made, the default option will be the increase to the Personal
Health Fund.
This will soften the impact of the annual rate increase, in effect reducing the
increase by 3%.
The group may ‘buy up’ to retain the higher level of renewal rewards which will
attract a premium that is approximately 3% higher.
The new renewal reward levels for the Personal Health Fund and cash back
are set out in the table on the next page.
Why the change: Feedback from Brokers and SME employers has indicated
that whilst our reward structure is essentially sound, it may be too top-heavy in
terms of the reward levels at higher statuses for some employers.
In the current economic climate we are being told that employers would happily
trade-off the higher levels of renewal rewards for lower premium.
The result is half year and annual rate increases that lead the market.
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
Table 1: Standard Personal Health Fund Booster and cash back levels
SINGLE SINGLE
£0 £37.50 £75 £150 £225 £25 £50 £100 £150
£1 to
£0 £37.50 £75 £150 £0 £25 £50 £100
£250
£251 to
£0 £0 £37.50 £75 £0 £0 £25 £50
£500
£501 to
£0 £0 £0 £37.50 £0 £0 £0 £25
£1,000
£1,001
£0 £0 £0 £0 £0 £0 £0 £0
+
FAMILY FAMILY
£0
£75 £150 £300 £450 £50 £100 £200 £300
£1 to
£0 £75 £150 £300 £0 £50 £100 £200
£250
£251 to
£0 £0 £75 £150 £0 £0 £50 £100
£500
£501 to
£0 £0 £0 £75 £0 £0 £0 £50
£1,000
£1,001
£0 £0 £0 £0 £0 £0 £0 £0
+
New business details: All quotes will now be based on our new standard
renewal levels. The standard renewal level equates to reward table 3.
Employers will have the option to ‘buy up’ to higher levels of rewards which will
attract increased premiums.
Why the change: In the current climate we are receiving more and more
requests to quote using the lowest level of renewal rewards. We are therefore
changing the default setting to reflect what is happening in the market.
Effective date: Applies to all new business from 1 July 2009 and existing
PruHealth members at renewal.
PRUHEALTH RATE REVIEW – 1 JULY 2009
*Premium increases shown are average base rate increases and do not
include changes in factors such as age, excess, no claims discounts etc.
Points to Note:
Corporate rates will not be affected by this change.
Any quotes already issued with a July 2009 start date will be reissued to
reflect the new rates and pricing changes
New quotes for July 2009 will be issued with these changes factored in.
The next review will take place on 1 January 2010 – this does not necessarily
mean that we will increase rates twice a year, only that our premium rates will
be reviewed.