Workplace Health Insurance has never been more critical, or more popular. According to recent data from the Association of British Insurers (ABI), the number of employees benefiting from employer-provided Health Insurance grew significantly in 2022, reaching 4.4 million. It's a testament to the value employers place on the health and wellbeing of their teams. However, with this rise comes a challenge many businesses are grappling with: the increasing cost of Private Medical Insurance (PMI) premiums. Claims under workplace health policies jumped by 15% in 2022, indicating a greater reliance on these benefits, but also contributing to rising premiums.For HR managers and other decision-makers in an organisation, this presents a dilemma: how can companies continue to provide high-quality health cover without allowing rising costs to erode their bottom line? The good news is there are effective strategies that can help you keep PMI premium rises in check, while still delivering comprehensive care that keeps your workforce healthy and productive. Here are 5 ways you can better manage those increases in PMI premiums:1. Encourage employee wellness initiativesThe best way to keep Group Health Insurance premiums from escalating is to reduce claims, and the most effective way to do that is by preventing health issues from developing in the first place. Encouraging healthier lifestyles within your workforce through wellness initiatives can significantly reduce claims in the long run.Consider implementing company-wide fitness challenges, mental health support programmes, and preventative health services. The ABI's findings highlight the effectiveness of insurer-provided services—many employees who were absent due to illness or injury were successfully supported to remain in their jobs through quick intervention. A healthy, active workforce is less likely to need costly medical interventions, and as a result, premiums can be managed more effectively.At YuLife, we not only believe that a gamified approach to wellness can make these initiatives even more engaging, but we have the data to prove it. Our gamified employee app sees unparalleled engagement. By encouraging employees to participate in daily challenges, you help them form healthier habits over time, thus reducing stress, improving physical fitness, and ultimately keeping your PMI costs under control.2. Reduce insurance premium tax costsInsurance Premium Tax (IPT) is a cost that many employers struggle with when providing PMI for their teams. While this is a factor often beyond immediate control, being aware of industry developments can make a difference. In its report, the ABI advocates for a reduction in IPT to make Health Insurance more affordable for employers and employees alike.Until IPT reductions become more widespread, employers can keep an eye out for opportunities, such as government incentives or initiatives, that can help mitigate these costs. Reducing IPT is not a quick fix, but advocacy and strategic adjustments in your insurance choices can help manage the impact on overall premiums.3. Optimise group coverageCustomising coverage options is another highly effective way to prevent PMI premium hikes. Every business is unique, and so are its employees. What might work for a tech start-up with a young workforce may not make sense for a company with a more diverse age group. Reviewing the existing level of coverage is vital for you to ensure that a policy fits the needs of your team, without unnecessary add-ons that drive up costs.Also, take the time to work with your insurance provider to understand where value can be added and where coverage might be optimised. It’s about striking a balance between providing comprehensive cover and avoiding needless expenses. By tailoring policies to better match employee demographics, you can ensure that the premiums are kept in check, whilst still providing the health benefits your team needs.4. Leverage early intervention servicesAnother effective way to manage rises in PMI premiums is to make the most of early intervention services that can reduce the severity of claims. The ABI's data shows that over 42% of employees who used insurer-provided services to support them while they were off work managed to return within four weeks. Services such as Virtual GP appointments, mental health support, and proactive wellness services make a real difference in avoiding prolonged and expensive treatments.Early access to healthcare prevents conditions from worsening, meaning fewer claims for complex (and costly) treatments. Encourage employees to take advantage of these services for both physical and mental health concerns, and make sure they know they’re available.At YuLife, we provide tools that make these interventions easier and more accessible. Employees can access virtual GP appointments, get advice on managing stress, and use mental wellness tools—all of which can help manage PMI costs by getting ahead of health problems before they escalate.5. Review claims history and analyse trendsTo successfully manage PMI costs, it’s important to understand what is driving those costs. Working closely with your insurer, whether that’s us or someone else, to regularly review your claims history can reveal trends and patterns. Are claims consistently coming from a specific type of treatment? Is there a recurring issue that could be mitigated through other types of support or prevention?Understanding these trends allows you to make informed decisions on the type of cover to provide and any potential changes needed. For example, if musculoskeletal problems are frequently occurring, perhaps an investment in ergonomic office equipment and education could prevent such claims, ultimately reducing costs.By collaborating with your insurer and analysing data on health claims, you can identify areas where employee health can be proactively improved. Not only does this keep costs down, but it also demonstrates a commitment to understanding and supporting your team’s needs.A smarter approach to Health InsuranceThe rise in PMI premiums doesn’t have to be an inevitable burden on your business. By taking proactive steps, like encouraging wellness, tailoring coverage, and leveraging early intervention services, you can keep costs in check while continuing to provide valuable Health Insurance that benefits your workforce.YuLife understands the balance between offering high-quality health cover and managing the financial impact on your business. Our unique, gamified approach to employee wellness helps to keep your team healthy and engaged, which, in turn, helps control PMI costs. With a focus on prevention and proactive care, we support businesses in providing essential coverage while managing costs effectively.If you’re interested in learning more about how YuLife can help you navigate the challenges of managing PMI premiums, get in touch today. Together, we can build a healthier, happier workforce without compromising on the benefits that matter most.