The stars continue to align, and they are pointing the way for employers and benefits brokers to consider imbedding an international medical tourism benefit into their employee offerings. Consider:
- Health care reform legislation has been enacted - adding millions of Americans to the Medicaid program, which does not approach covering the true cost of care.
- We already have a shortage of overworked primary care physicians.
- The downturn in the U.S. economy seems to be finding new troughs each week.
- Approximately 365 baby boomers per hour will begin turning 65 in just a matter of months and qualifying for Medicare.
- A sharply increasing number of Americans have chronic diseases.
- Medical inflation continues to outstrip overall price inflation in America by almost double: 3.6 percent versus 2.1 percent.
Enough of the gloomy forecast. On a brighter horizon, all of these forces signal an ideal time for employers to consider adding an international medical travel benefit to their health plans. And since the benefit easily and inexpensively can be added mid-cycle, there is little need to wait until Jan. 1.
Some employers have taken an iterative approach by simply including an international medical travel option as a "value-added" service for any non-covered services or treatments for pre-existing conditions. This is for services that might not be covered by the employer's standard benefit plan, and it provides associates with credentialed medical care at a lower cost. It also signals to the employees that management recognizes the rapid improvement and safety in care abroad. With a growing diversity in the workplace, this also appeals to certain employees who might want to receive care in their country or region of origin (i.e., Mexico, Puerto Rico, India, Thailand, etc.).
Then, at the time of annual benefit renewal, employers have added a full-blown benefit that incentivizes their associates to travel abroad for care. For instance, my personal benefit plan covers my knee replacement at 100 percent if I travel to an international hospital in Companion Global Healthcare Inc.'s network - while my out-of-pocket expense to have it completed locally is $3,500. That's a bunch of dough ... even in good economic times.
Other benefits
It is important for brokers and human resources executives to at least be aware of the benefits that international medical tourism offers to their customers/employers. Today, there are more than 255 Joint Commission-accredited hospitals in other countries; this is the same accreditation benchmark that more than 4,800 hospitals in America proudly enjoy - and the same achievement that Medicare recognizes for deeming status in the U.S.
At least one of these accredited facilities, Bumrungrad International in Bangkok, Thailand, has more than 200 U.S. board-certified physicians on its credentialed staff. And last year alone, Bumrungrad treated more than 400,000 international patients.
Surgical complication rates, nosocomial infection rates, and patient satisfaction scores of the premier international facilities all compare very favorably to American hospitals. The patient experience at many of the Joint Commission-accredited hospitals will almost certainly be more pleasurable than at the average U.S. facility. And the cost savings cannot be overlooked - savings on most surgical procedures can easily exceed 50 percent to 80 percent of what employers are accustomed to paying. Employers can lower their medical trend while simultaneously expanding coverage by offering richer benefits for certain procedures overseas at accredited facilities.
So, while international medical tourism may not be the total answer to escalating prices of surgical care in America for employers, it is part of the answer.
One-on-one with the MTA
Benefits Selling caught up with Renee-Marie Stephano, president of the Medical Tourism Association, at this year's Benefits Selling Expo in Washington, D.C. (Check out our expo recap, page 42, for more highlights).
In case you missed it, Stephano explains how medical tourism can offer higher quality at much lower prices, and why so many carriers and employers are embracing it:
Benefits Selling Expo: What patient age demographic is taking the most advantage of medical tourism and its opportunities?
Renee-Marie Stephano: There is no real age demographic. Patients are traveling from 30 years old to literally in their 80s. The majority are between 30 and 50 years old.
BSE: Which areas of the globe are attracting most of the so-called medical tourists?
RMS: Latin America and Asia are getting a tremendous amount of attention. The quality is really amazing and there are savings up to 90 percent off. A $100,000 heart procedure could be as little as $10,000 overseas. But the savings doesn't mean the quality isn't there.
Some of these hospitals are absolutely amazing and the patient gets a private room that can be similar to a five-star hotel. Also, top hospitals overseas are accredited by JCI, the international arm of the Joint Commission, which accredits U.S. hospitals.
BSE: How can benefits brokers capitalize on the medical tourism movement?
RMS: Offering medical tourism as a part of their benefit offerings not only sets them apart and gives them something creative to offer, but benefits brokers can derive a very healthy revenue stream from offering medical tourism, such as a per employee per month fee or commission. Now that health care reform just passed more employers will look for creative options to lower what will be significantly increasing health insurance costs.
BSE: What should benefits brokers watch out for when engaging medical tourism programs?
RMS: Benefits brokers should work only with accredited hospitals and clinics, and should only work with certified medical tourism facilitators. There are quality medical tourism facilitators who help coordinate care for employers and insurers, but there are ones that do not have the best practices or have bad outcomes. It is important to check with the MTA before working with a facilitator.
