Bupa is the first and foremost health insurer to form a patient cash plan as a substitute to health insurance. The plan that is available to companies of all sizes offers a variety of the usual advantages from health insurance, but in the shape of an inexpensive cash plan for patients.

There will be three different levels of cover offered for a fixed annual charge, around BP400 a year for day-patient operation in a hospital, up to GBP600 a year for consultations and about GBP£2,000 per year for in-patient stays in a hospice.

The proposal will also offer cover of around GBP600 per year for physiotherapy, osteopathy or homoeopathy.

The fee for the plan will hinge on the number of workers covered, with an opening level of GBP93.50 for every employee per year for those firms, which consist of more than 250 employees.

All levels of cover offered by Bupa will consist of 24-hour access to their nurse helpline that provides information and direction on all the major healthcare problems.

The plan has no upper age limit, and can be an organization financed, voluntary or flexible gain, with no obligation for employees that are company backed to announce any pre-existing provisions or be underwritten.