One of the major challenges modern companies face is the issue of employee healthcare. Obtaining insurance to cover the company as a whole can be challenging and confusing. Having a comprehensive health insurance plan in place to protect your employees’ well-being is a benefit for existing staff members and a major incentive in attracting new hires.
It is no secret that the cost of healthcare worldwide is getting more expensive. In their home countries many expatriates have concerns about healthcare—namely where to obtain treatment, how much treatment costs and the quality of care. When these expatriates relocate overseas these concerns do not dissipate, rather they tend to become more important.
To address the healthcare concerns of an employee who has recently arrived in a new country, many companies choose to offer comprehensive group health insurance plans to their staff. A key problem that HR department’s face worldwide is understanding how these health insurance policies work and can offer their organisation.
Coverage decisions
The first choice HR managers must make when deciding on a group health insurance policy is coverage: either local or international. Where the group is located may influence the choice of one option over another. Local health insurance only provides coverage at one location, normally the country in which the business is located. International health insurance is often global coverage. This difference is vitally important to an employee who is located in a country where healthcare facilities are below their home standards.
Stay local
Local plans are often unable to provide protection outside of a single country, which poses a problem when an expatriate employee is relocated and has to repurchase health insurance, possibly enduring a waiting period prior to commencement of full coverage. International plans, however, are globally portable, so even if the employee returns to their home country, the policy will travel with them and continue to provide protection.
Local health insurance options will typically only allow the policyholder to receive medical treatment from specific hospitals or healthcare providers. International health insurance usually allows the policyholder the freedom to choose where they receive their treatment—any hospital or doctor, anywhere in the world.
In many cases local health insurance will impose a renewal limit on the coverage which is offered—no renewals after the age of 65. With international health insurance there are no such limits, with many policies guaranteeing the renewability of the policy for life, even if the employee leaves the group.
While all health insurance plans have coverage exclusions, such as acts of war and terrorism, international health insurance plans tend to have far fewer. Additionally, the levels of coverage with an international plan are typically much higher. Many international providers offer annual coverage limits up to USD 1 million.
One of the major considerations is the policy premium. Local health insurance premiums are normally calculated based on claims the policyholder made during the previous year. If the group claims are high, the plan premium is likely to increase upon renewal. International policies do not use the claims history as a basis for premium calculation. These plans tend to be community rated, based on the average medical costs of policyholders worldwide. The premium for an international policy is less likely to jump year to year, making it easier to forecast yearly budgets.
Go international
When looking at international health insurance policies, it is important to note that group policies offer some significant benefits over individual coverage, including the ability to tailor the coverage to each individual member of the group. It is possible for more senior employees to receive higher levels of coverage than a fresh hire. Benefits that can be added to a group international health insurance plan include coverage for dental treatment, out-patient consultations, maternity treatment, vaccinations and emergency evacuation.
Group international health insurance policies can offer a Medical History Disregarded, or MHD, benefit. With MHD coverage, all pre-existing conditions within the group can be covered by the policy, where they would normally be excluded from the plan. It is possible to offer coverage for asthma, diabetes or pregnancy—conditions that would normally be subject to a waiting period, or not be covered at all.
Additionally, many international health insurance providers will allow an employee to take their coverage with them should they leave the company, enabling them to continue cover for any pre-existing conditions. This offers immense security to employees, who understand if the worst was to happen, they would still be able to receive comprehensive healthcare protection.
Excess to lower costs
When looking at premiums it is possible to keep your fees low by including a deductible or excess in the policy. Typically available on a per-condition or per-year basis, a deductible can dramatically lower the overall cost of your group health insurance policy.
When choosing any type of health insurance coverage it is important to be aware that there are a myriad of options available. Speaking to a reputable intermediary is a good place to start when looking at the different types of plans. Ultimately, the choice is yours and you need to find the policy which is the right fit for your organisation.
Paul Arkwright
Publisher
