United Kingdom: Potential Brexit Implications on Employee Benefits

It has been several months since citizens in the United Kingdom voted for the UK’s official withdrawal from the European Union. Article 50 – the important next step in the withdrawal process – has yet to be invoked. No one can say for sure when the government will take the plunge and invoke Article 50, although some rumors claim early 2017.

If you have employees who are living and working in the UK or who are originally from the UK and now live and work elsewhere, there is no doubt that you are curious what implications the Brexit will have on your employees’ medical coverage. While no one can say for sure what will happen in the months and years to come, below we have summarized some potential Brexit implications for your review:

Reciprocal Agreements

Agreements that currently allow British citizens holding the European Health Insurance Card (EHIC) to receive free or low-cost state medical care in other EU or EEA countries may cease to exist post-Brexit. This will likely cause a shift in how British citizens plan for and purchase health insurance coverage for out of the country care.

EU & UK Expats

EU citizens who live and work in the UK may no longer have access to free NHS treatment, unless their countries create new agreements for reciprocal medical care with the UK. In countries where no new agreements are made, then both British citizens living abroad and EU citizens in the UK will need to rethink their medical coverage. This could mean changes in the way that employers provide medical insurance to their employees; benefits packages that were once adequate may need to be reconsidered.

Staying Current

Regardless of what happens in the insurance sector as a result of the Brexit, one thing is for sure: changes are coming. Change may be frightening, but it doesn’t have to be. Employers can prepare for the coming changes by working with local experts, such as Asinta’s Partner in the UK, Punter Southall, to ensure that their employee benefits packages stay current with changes in the medical insurance and employee benefits markets as the Brexit continues to develop.

To get in direct contact with Asinta Partner Punter Southall and get all of your questions about health care coverage in the UK answered, please click here.

For more information on how the Brexit may affect the international private medical insurance sector, including some more insight from our Partner in the UK, Punter Southall, check out this article from Health Insurance & Protection Daily.

Going to be in Seattle on October 5, 2016? Consider attending Alliant’s global symposium! During the event, John Dean, managing director at Punter Southall, will be sharing his views on the implications of the Brexit. You can view the full invite and schedule here.