As a follow-up to a column AWB President Don Brunell wrote last year about Medical Tourism:
Cover the Uninsured's Website reports that American insurance companies such as Blue Cross & Blue Shield of South Carolina are encouraging their policyholders to seek medical treatment abroad in order to cut down on costs, reports BusinessWeek.
Blue Cross has forged alliances with a number of hospitals overseas to allow its 1.5 million members to access their services. According to Jonathan Edelheit, president of the Medical Tourism Association, "All of the largest U.S. insurers are starting to educate themselves or are putting [offshore] programs in place," as are companies that self-insure, the article notes.
In order to convince Americans to go overseas for treatment, insurance companies can waive fees, cover travel expenses and even offer a cash incentive. And since a heart procedure costing $100,000 in America might cost $10,000 to $20,000 in a high-quality private hospital in Asia, the company will still make a profit, reports BusinessWeek. "Americans haven't come to grips with having their heart surgery in Thailand," said Curtis Schroeder, the American CEO of Bumrungrad International Hospital in Bangkok. "But that will change."
The downside of the trend is that "offering international coverage might make it easier for employers to limit benefits at home…by raising the deductibles on U.S.-based procedures," according to the article. In addition, patients will find it very difficult to sue an Asian medical provider for malpractice.
"It will take a while for the trickle of insured U.S. patients in Asia to become a torrent," BusinessWeek concludes. "But over time, for policyholders and payers alike, the price may be hard to resist."
Don C. Brunell, President
