Sales hit £23m for healthcare plan provider

HEALTHCARE cash plan provider Medicash has reported record sales of £23m, with the increase driven by strong broker relationships, despite a significant increase in insurance tax.

The company, which  89 staff at its Liverpool city centre headquarters, saw sales of company paid plans rise 7.8% to 41,469 in  2015, up from 38,477, thanks to a strong intermediary led market.

Indeed, commissions paid to intermediaries was up by more than 60% on last year and edged close to £500,000.

Medicash spearheaded a vigorous campaign against the increase in insurance premium tax (IPT) which came into effect in 2015.

The hike (from 6% to 9.5%) had a negative impact on results and the wider market, it said.

Despite this, premium income increased 5.5% to £23m, whilst the total number of Medicash policyholders grew by 11% to 188,314.

Chief executive Sue Weir said that 97% of the claims received duting the year were paid, with the value of those claims totalling £18.4m.

Weir said: “We are delighted to have experienced another year of strong growth. The increase in take up of corporate plans is a reflection of a continued focus on our ongoing commitment to investment in innovation and first class customer service.”

Earlier this year, the organisation joined forces with industry specialist Medex Protect to launch a new corporate plan aimed at families called Medicash Family Care, developed to help parents and guardians meet the costs of caring for sick children irrespective of whether or not they have private medical insurance.

The Medicash Charitable Trust donated over £120,000 to local health related charities and good causes in 2015.