Why Supplementing Benefits With Medical Travel Makes Sense

Results of a survey of 400 U.S. corporate benefit managers released this year by the International Foundation of Employee Benefit Plans show that 11 percent of employers now cover medical travel for treatment outside the U.S. Insurers who supplement employer options with international care have a competitive advantage, enabling employers to offer attractive benefit packages. Here is a cost comparison:

Real-World Case Study

A supermarket chain based in Maine is one of the first companies in the U.S. to include a foreign hospital in its network of providers. On Jan. 1, 2008 the company added a hospital in Singapore for hip and knee replacements where the cost for hip replacements is about $10,000 to $15,000, compared to more than $40,000 in the U.S.

Generally, under the company's health plans, the company pays 80 percent of an employee's medical costs -- until the worker reaches an out-of-pocket limit of $2,000 to $3,000. For an employee who goes to Singapore for a hip replacement, the company will pay the entire medical tab, travel costs including airfare and lodging for the patient and a companion, up to $10,000, still netting the company a 75% savings over U.S.-based care.

To find out how you can offer your clients similar savings, contact us today.