Cash plan provider Health Shield has wrapped up the acquisition of Medex Protect, a specialist private medical insurance (PMI) excess and shortfall protection provider.

The deal will add a complementary bolt-on solution to Health Shield’s existing suite of products, thereby extending the availability of standalone PMI excess cover to more companies.

The add-on policy reimburses the excess clients pay if and when they make a claim on their PMI policy.

Additionally, it also offers reimbursements (up to policy limits) for shortfalls when a hospital or consultant charges over and above private medical insurers’ guidelines.

Commenting on the deal, Health Shield CEO Jonathan Burton said: “Medex Protect is a well-respected organisation with a product that represents a perfect fit for Health Shield.

“Whilst Health Cash Plans provide valuable PMI excess cover, we appreciate that not every company wants a cash plan but they still want to cover their PMI excess. This deal will allow us to help them do just that.”

Medex Protect director Jason Dunks said: “Medex Protect has built a strong name for itself in the intermediary market thanks to our great service and unique proposition. We provide extra protection and peace of mind for clients; in turn giving intermediaries the support to enhance PMI retention levels in light of the ongoing increases in IPT rates.

“Joining with Health Shield will bring significant strategic opportunities and enable the small team at Medex Protect and our proposition to be an integral part of a growing, innovative employee wellbeing business.”

Medex Protect will use the Health Shield brand, while the acquired business will relocate from its current base in Wilmslow, Cheshire to join the Health Shield team in Crewe after Christmas.