A couple of surveys reached the news desk here at Benefits Selling – compelling information, which prompted this column, but raised more questions about the potential for this growing industry.
The Medical Tourism Association released a survey late last month on the future for medical tourism post health care reform. No surprise – as most insurers and employers believe reform measures will inevitably drive up health care costs – the results tout potential for growth. The MTA reports that waiving pre-existing condition clauses and making insurance premiums equal for healthy and sick people will drive health insurance costs up dramatically, making employers and insurers more interested in offering medical tourism as an option to keep costs down.
"Seventy-one percent of insurance companies and employers felt health care reform was extremely positive for the medical tourism industry and more Americans would travel overseas under the new law. Employers and insurance companies know that health care reform will increase costs and medical tourism is one of the few ways to lower those costs," says Jonathan Edelheit, CEO of the Medical Tourism Association.
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By 2020, the MTA reports, family insurance premiums will cost roughly $30,000 to $40,000 per year, while the average family income hovers around an estimated $56,000. The cost-saving appeal is there, and so might the quality treatment — there are more than 255 Joint Commission-accredited hospitals globally with hundreds of U.S. board-certified physicians.
Another survey from ExHealth identifies more than 35 countries as important medical tourism destinations — India was ranked No. 1; Thailand and Singapore came in at No. 2 and No. 3 respectively. The United States placed at No. 4.
The concept — although nothing new — makes sense: inflated health care costs and rising premiums will push Americans to find affordable care elsewhere. But as for being a truly marketable benefits option, many brokers remain skeptical. In fact, ExHealth finds 94 percent of medical tourism industry "insiders" – professionals closely involved with the medical tourism industry – believe their sector of the industry has yet to reach its full potential.
So, what might make medical tourism such a hard sell? According to ExHealth, the industry's top four challenges are "accessing reliable information" at 59 percent; "too many newcomers jumping on the medical tourism bandwagon, not experienced or understanding of the industry" at 54 percent; "lack of pre- and post-operative care arrangements" at 52 percent and "complicated intra-country laws and legal procedures" at 49 percent.
"One of the survey questions inquired why the respondents thought that there might be a reluctance in some consumers to participate in health care tourism and the main responses we received were that they might have concerns about complications, experience confusion over aspects of available services, be uninformed and find the option complicated," says Dr. Jagyasi, honorary MTA chief strategy officer and architect of ExHealth's survey.
"This is important information, as it clearly shows that education is a vital component in allowing us to facilitate medical tourism to reach its greatest potential. If we can allay people's fears about foreign treatments and guide potential health tourists with information on what to expect and important advice on visa and travel issues, then we will be providing a vital service and as well as giving a welcome boost to the region's health sector."
Issues related to medical tourism growth:
| 59% | Accessing reliable information |
| 54% | Too many newcomers jumping on medical tourism bandwagon, not experienced or understanding of the industry |
| 52% | Lack of pre- and post-operative care arrangements |
| 49% | Complicated intra-country laws and procedures |
| 48% | Lack of support systems by government bodies |
| 45% | Patients not being informed properly about pros and cons |
| 43% | Language difficulties and other communication problems |
| 42% | Cross-cultural misunderstandings |
| 33% | Challenge for hospitals and providers in maintaining internationally acceptable standards |
| 32% | Lack of willingness to travel abroad for medical treatment |
| 17% | Other reasons |
| Source: ExHealth |
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