What a health cash plan provider does
The short answer
A cash plan reimburses everyday costs such as dental and optical bills up to set limits — it is not health insurance. This page explains what a cash plan provider does, how it is paid, what it is regulated to do, and where your protection comes from. We name no companies.
Written by Emma Leadbetter. Reviewed by Ilana Eldad.
Published 2026-09-15. Last reviewed 2026-09-15. Next review due 2027-03-15.
What it does
- Pays back a proportion of everyday health costs you have already paid, up to annual limits.
- Typically covers dental, optical, physiotherapy and similar routine expenses.
- Does not pay for surgery or private hospital admission.
- Often sold through employers as a low-cost benefit.
How it is paid
- By monthly subscription, usually a small fixed amount per level of cover.
- Limits are per benefit and per year, and unused allowance rarely rolls over.
- Claims are reimbursements: you pay first and claim back with receipts.
What it is regulated to do
- A cash plan is a regulated insurance product, so the FCA rules apply.
- The provider must give clear information about limits and exclusions.
- It does not turn into health insurance because it is bought alongside one.
Anyone arranging or advising on insurance in the UK must be authorised by the Financial Conduct Authority or be an appointed representative of a firm that is, and you can check any firm or individual free of charge on the Financial Services Register. [1] The conduct rules that apply to insurance sit in the FCA’s insurance sourcebook. [2]
What protects you
- Complaints go to the provider, then to the Financial Ombudsman Service.
- Financial Services Compensation Scheme protection applies as for other insurance.
- The benefit table is the contract — read the limits before you buy.
| The problem | Where it goes |
|---|---|
| An insurance sale, a policy decision or a declined claim | The firm’s complaints process first, then the Financial Ombudsman Service |
| A firm that has failed owing you money | The Financial Services Compensation Scheme |
| Care or safety at a hospital or clinic | The provider’s complaints process, then the health regulator for your nation |
| A doctor’s conduct or fitness to practise | The General Medical Council |
| Something we have published | Our own corrections route on the complaints page |
The Financial Ombudsman Service resolves complaints about regulated firms free of charge, [3] and the Financial Services Compensation Scheme can pay compensation where an authorised firm cannot. [4] Care regulators publish inspection reports for private hospitals as well as NHS ones, [5] and the medical register shows whether a doctor holds a licence to practise. [8]
Questions worth asking
- What is the annual limit for each benefit I would actually use?
- Is there a waiting period before I can claim?
- Are dependants included, and at what cost?
- Would this duplicate cover I already have through work?
Free and impartial guidance on any of this is available from MoneyHelper. [9] Private hospital and consultant performance and fee information is published by PHIN under the Competition and Markets Authority’s order. [6] [7]
Sources
- Financial Conduct Authority. The Financial Services Register. Continuously updated; checked 15 September 2026 (primary source)
- Financial Conduct Authority. Insurance: Conduct of Business Sourcebook (ICOBS). Continuously updated; checked 15 September 2026 (primary source)
- Financial Ombudsman Service. Financial Ombudsman Service. Continuously updated; checked 15 September 2026 (primary source)
- Financial Services Compensation Scheme. Financial Services Compensation Scheme. Continuously updated; checked 15 September 2026 (primary source)
- Care Quality Commission. Find and compare care services. Continuously updated; checked 15 September 2026 (primary source)
- Private Healthcare Information Network. Private hospital and consultant performance and fee information. Continuously updated; checked 15 September 2026 (primary source)
- Competition and Markets Authority. Private healthcare market investigation. Continuously updated; checked 15 September 2026 (primary source)
- General Medical Council. The medical register. Continuously updated; checked 15 September 2026 (primary source)
- MoneyHelper (Money and Pensions Service). MoneyHelper — free and impartial money guidance. Continuously updated; checked 15 September 2026 (primary source)