How to budget for staff health insurance
What drives the cost per employee, how to work out a total that finance will approve, and simple ways to get more cover for the same money.
The first question from the CEO or finance lead is usually "How much will this cost?" The honest answer is: it depends on a few choices you control. Once you understand them, you can build a budget and defend it.
What decides the price
- Plan tier. Higher tiers have higher limits, better ward types and more benefits. This is the biggest cost driver.
- Team size. Group plans usually get cheaper per person as the group grows. Very small teams may have a minimum headcount to meet.
- Dependants. Adding a spouse and children multiplies the number of people covered.
- Extra benefits. Richer maternity, dental, optical or chronic care add to the premium.
- Hospital list. Plans that include premium hospitals cost more.
- Payment frequency. Paying yearly is often cheaper than paying quarterly or monthly.
A simple way to work out your total
Start with this formula, then adjust:
Here is a worked example for a company of 40 people. The figures are made up to show the method. Use Yousure to see real prices for your team.
| Group | People | Plan | Premium / person / year | Subtotal |
|---|---|---|---|---|
| Managers | 8 | Mid-tier | ₦180,000 | ₦1,440,000 |
| All other staff | 32 | Basic | ₦90,000 | ₦2,880,000 |
| Buffer for new hires | ~4 | Basic | ₦90,000 | ₦360,000 |
| Total | 44 | ₦4,680,000 |
Divide by 12 and this company needs about ₦390,000 a month, or roughly ₦8,900 per person each month. Numbers like this are much easier to take to a board than a stack of HMO brochures.
Ways to get more for the same money
- Tier by role. Put everyone on a solid base plan and move managers up. This is common and easy to explain.
- Let staff top up. Cover a base plan and let staff pay the difference for a higher tier or for dependants through payroll.
- Pay yearly if cash flow allows. Ask HMOs what discount they offer for paying up front.
- Match benefits to your team. A young team may need maternity more than chronic care. An older team may need the opposite.
- Compare every year. Prices and hospital lists change. What was best last year may not be best now.
How to present the budget
When you take this to leadership, keep it to one page:
- The total yearly cost and the cost per person per month.
- The two or three plans you compared, side by side. A Yousure comparison link works well here.
- What staff get: key limits, maternity, and the hospitals near your offices.
- What it replaces: salary advances, emergency collections and days lost to illness.
Action plan
Your budgeting action plan
- 1
Count who you are covering
List staff by role, plus dependants if you will cover them.
- 2
Choose your structure
One plan for all, or a base plan with higher tiers for some roles.
- 3
Get real prices
Enter your headcount and budget on Yousure to see live prices per employee.
- 4
Add a buffer
Add about 10% for people you expect to hire this year.
- 5
Make a one-page proposal
Show the total, the monthly cost per person, and a link to the plans you compared.
