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15 Mar 2016
by Marco Giacomelli

Why international private medical insurance (IPMI) is vital for protecting your employees abroad

The growth in the international private medical insurance (IPMI) market continues unabated as access to the global economy continues to open up.

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With an increasing number of organisations looking at overseas markets for additional revenue streams, it remains important for companies to protect the health of employees no matter where they are in the world.

Managing the health risks of international employees

International private medical insurance (IPMI) supports employee health and helps to maintain a healthy and productive international workforce.

The international private medical market has experienced year-on-year growth now for well over a decade, even in the face of extreme economic challenges. It’s a trend that demonstrates just how much the global economy continues to be accessible for organisations seeking revenues streams abroad.

Overseas expansion is not without its challenges, however. Attracting the right calibre of staff is just one of many hurdles. Creating a strong remuneration package is a good start and IPMI cover is normally an integral part of any expatriate package.

But what exactly is international private medical insurance and how does it benefit those covered by it?

IPMI’s overriding benefit is access to medical treatment when an accident or illness occurs. And with insured’s based around the world, modern IPMI plans offer a rich cocktail of cover benefits, extensive medical networks and wellness solutions.

High-benefit cover

International insurance cover is characterised by high benefit limits and a wide range of covers. Policy limits can exceed of £1m per annum and a typical policy will provide an extensive range of in and out-patient treatments including cover for surgical fees, prescription drugs, cancer, dental, vision, maternity and mental health treatment.

Policy limits are generally higher than domestic private medical plans, driven by the international nature of the cover and the risk of high-cost eventualities such as evacuations.

Networks and direct settlement

IPMI providers have established networks of hospitals, clinics and consultants around the world for use by their customers. Each medical provider is vetted and selected for their ability to provide a high level of healthcare with some chosen because they offer specialist care in a particular area.

Insurers usually provide a direct settlement option to policyholders if they use a network facility. This is particularly the case for pre-authorised treatment but, in some cases, also for out-patient visits. In these cases, the insurer will settle fees directly with the provider and save the patient from having to pay out of pocket and reclaim the fee from the insurer.

Networks allow insurers to oversee and manage customer procedures and maintain costs by paying agreed fee structures. Whilst policyholders are free to use medical providers outside of their insurer’s network they won’t benefit from direct settlement arrangements and may have to pay out of pocket if the fees charged exceed their policy limit for a procedure.

Evacuation

The nature of international working means that evacuation cover is a necessary part of any medical insurance program. If an expatriate falls ill or has an accident in a remote location or requires highly specialist care that is not available locally they will be evacuated to an appropriate facility. Evacuation is highly specialised and insurers work with dedicated assistance partners where this need arises.

Portability

IPMI cover also contains a portable element that is not generally a feature in domestic plans. Expatriates travel frequently and can return home in between international assignments. Having to find new cover with each location change would take time and be problematic, particularly where pre-existing conditions are present.

Unless a new location posed a tangible risk difference the benefits under the same international medical insurance plan would be transferable wherever the expatriate moved to.

Wellness solutions

Healthy staff means a more productive workforce for clients. And if claims reduce it helps insurers to maintain premiums at acceptable levels. This win, win situation means that insurers work closely with clients to implement wellness programs for employees that can identify and tackle issues before they become major problems.

Initiatives include:

  • Routine physical exams for adults
  • Pap smears
  • Mammograms for breast cancer screening or diagnostic purposes
  • Prostate and colorectal cancer screening
  • Cancer screening
  • Well-child exams  and routine vaccinations for children

Insurers can also place medical teams on-site, particularly in remote locations, to monitor wellness and educate employees about how to avoid illness and stay healthy. On-site teams are able to provide health risk assessment tools and disease management programmes to manage risks more effectively where medical conditions arise. The ongoing maintenance of chronic conditions can also be managed more effectively once diagnosed.

Building an overseas workforce is a challenging task and employee health is a risk factor that needs to be taken seriously by employers. International medical insurers have large and sophisticated healthcare management infrastructures in place to protect staff when they fall ill or have an accident. Wellness initiatives also help to maintain healthy working populations for the benefit of both employers and their employees. 

This article was written by Marco Giacomelli, CEO at General Global Health, the Generali Group's specialist IPMI division.

In partnership with Generali Global Health

Generali Global Health provides international private health insurance.

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