Josef Woodman, author of the first comprehensive guide to medical tourism “Patients Beyond Borders”, recognized expert in the medical tourism industry, and member of Satori World Medical’s Strategic Advisory Board shares his thoughts on how the landmark healthcare reform bill will affect the medical tourism industry.

First Thoughts on the Dawnings of Healthcare Reform: How the Patient Protection and Affordable Care Act Is Likely to Affect Medical Tourism

Author: Josef Woodman, Patients Beyond Borders; CEO, Healthy Travel Media, LLC

Over the course of the past several months, and particularly since the recent signing of the Patient Protection and Affordable Care Act (otherwise informally known as the Healthcare Reform Bill), I’ve been asked by media and industry people how this new and landmark legislation will affect cross-border medical travel.

The short answer is: who knows?  Most components of the Act take effect gradually, and implementation is likely to be glacial.  At this point it’s not clear the Act will stand, as more than 14 states have now filed lawsuits challenging its constitutionality.  Additional challenges are sure to arise, further muddying the already roiled waters.

Should the Act remain in place, we will undoubtedly see increased burdens on our already groaning healthcare infrastructure.  In accommodating 30+ million new healthcare consumers, all but the wealthiest Americans will likely experience an increased and acute shortage of primary care physicians, nurses, and administrative staff, resulting in longer waits for treatment.  Thus, while the number of uninsured American patients will decrease, the ranks of the underinsured will rise dramatically, as limited resources are triaged by insurers and providers across the healthcare reform landscape. 

In short, the US healthcare system under healthcare reform will likely morph into more of a public-private system found in the UK, and emerging in Canada.  Not unlike the US education system, we’ll see lower cost—albeit less accessible— public care for those who cannot otherwise afford more expensive private care, financed by luxury insurance plans, concierge services or out-of-pocket payments.

To avoid the scenarios experienced by overburdened government-regulated healthcare systems in the UK, Canada and Germany, US insurers and providers would be prudent to take proactive measures.  Thinking globally wouldn’t hurt.  For example, to help mitigate the pressures of our over-burdened healthcare system, US insurers might aggressively accelerate efforts to include cross-border treatment plans for American-accredited facilities overseas. Cost savings can be substantial, even at the wholesale rates.  In like manner, leading US providers should be aggressively planning the build-out of more cost-efficient international facilities and/or creating sustainable affiliations with JCI-accredited hospitals abroad.

With or without healthcare reform, most Americans will in the coming months and years experience compacted access to the relative luxury of quality care their mothers and fathers enjoyed.  However, greater transparencies in quality assurance, cost-comparison and patient satisfaction data will lead consumers to an impressive array of informed, cost-effective choices for medical care, often international in scope.

By Keith Mendoza, Director of Sales of Satori World Medical

The continual rise in employer-funded healthcare costs has prompted more U.S. companies to explore innovative alternatives to traditional health insurance plans. As such, insurance brokers and advisors are continually looking to partner with companies that can provide solutions that lower employers’ healthcare costs while offering benefit programs that their employees will value.

Employers are now integrating medical travel programs into their benefit plan designs. Through such programs, their employees have the option to travel to international Joint Commission International (JCI) hospitals to undergo select surgical procedures at an average cost of 40-80 percent less when compared to a hospital in the U.S. That 40-80 percent savings is generated even after factoring in all hotel accommodations and roundtrip airfare for the patient and a companion.

Through medical travel programs, the employee who receives medical care internationally is able to retain dollars they would have otherwise spent if they had chosen to have their procedure done domestically. Employers who have incorporated a medical travel program allow the individual to waive their copays, deductibles and coinsurances. Additionally, a feature that is unique to the Satori World Medical program is its financial sharing concept, whereby a portion of the savings of global healthcare is passed along to the employee through a tax-advantaged, employer-funded Health Reimbursement Account (HRA). Because the savings of global healthcare are so significant, many employers are establishing HRA’s and funding a portion of the savings generated to their employees.

Here’s how it works: An employee selects the employer option to go to Mexico for a major medical procedure through the Satori Global Network™. All out-of-pocket cost for the individual are waived and the employer deposits a fixed dollar amount (between $5,000-$10,000) in the employee’s HRA, representing an employee’s share of the savings. The funds deposited are tax-deductible to the employer and tax-free to the employee. The employee can then use those funds to pay for future medical expenses, such as premiums, deductibles, co-pays, prescriptions, and more. The funds roll over annually, so essentially the employee can cover their out-of-pocket medical expenses for several years by choosing to go internationally for a major medical procedure.

Why medical travel is attractive to employers and their employees:

• Significantly reduces healthcare cost. Employers have the opportunity to save dollars on their surgical claims experience. Many medical travel programs do not charge a Per Employee Per Month (PEPM) or network access fee. Savings are based on utilization, so there is no need to invest dollars in the medical travel program up front.
• Gives moderate income employees the opportunity to hold onto dollars otherwise allocated for out-of-pocket expenses. Typically, medical travel programs waive all out-of-pocket expenses for the employee and offer a cash incentive. A medical travel option empowers employees with the ability to choose where they receive their care based on quality and price. Employees have the opportunity to avoid going into medical debt for a major surgical episode. 
•  Meets the needs of a culturally diverse workforce. A large share of the workforce in the U.S. is comprised of Hispanics, Filipinos, Asian-Indians, Vietnamese, and Chinese employees. Companies with largely diverse workforces have a vested interest in meeting the health and welfare needs of their employees.

The fact is that opportunities and innovation in healthcare delivery exist all throughout the world, whether it’s in India, Mexico or Singapore. Embracing these opportunities allows organizations to be at the forefront of providing innovative alternatives to lowering healthcare costs. Medical travel essentially is a cost savings strategy that is tangible, and just makes sense.

Satori World Medical offers many choices in destinations to receive medical care. Whether you are traveling internationally for a shoulder or knee replacement or even a cosmetic procedure, such as a facelift, you and your companion can take some extra time on your trip to enjoy the amenities of your hotel and experience the rich cultural areas in which our International Centers of Excellence are located.

The next highlighted destination in the Satori Global Network™ is Metro Manila, which is a metropolitan area home to many neighboring cities including Manila, the capitol of the Philippines.

Your ‘to do list’ while in Metro Manila:

• Visit the Malacanang Palace in Manila
• See the three-century-old Pasig Cathedral
• Browse the Pasig City Museum and Plaza Rizal
• Shop the super-malls in Manila
• Spend the afternoon at Luneta Park, home of the Rizal Monument

Transportation

Transportation in Metro Manila via the roadways can be difficult if you do not leave the driving to the locals. It is best to stick with taxis, buses, minivans or jeepneys – or even the railway systems if you are going longer distances. Transportation in Metro Manila is extremely cheap compared to US standards, and is generally easy to navigate if you know your destination. Driving a car is not recommended for those who do not know the area, as local drivers are very comfortable with the roadways and often follow the driving laws loosely, at best.

Tours

There are many touring packages available in Metro Manila, but some of the places to visit are so large, they are practically tours in themselves! One place that is a must see is the Manila Ocean Park. It is the largest oceanarium in Asia and one of the most advanced. The park is set in a large center which also hosts many restaurants, and a large shopping mall, as well as a hotel. Also, take a tour through Chinatown for a different perspective on Chinese culture, as Chinese presence in the Philippines pre-dates even the arrival of the Spaniards over five centuries ago. All throughout Metro Manila, you can find great cuisine at great prices as well as great shopping, which we will get into next…

Shopping

The Metro Manila shopping experience can please shoppers on both ends of the spectrum. Those looking for high end boutiques and luxury items will be pleased to know that the malls in Manila are an experience like no other. Even when compared to some of the largest malls in the United States, the size of these malls alone is incredible. They contain everything from department stores, to schools, spas, convention centers, apartments, museums, art galleries and more, not to mention the numerous shops and boutiques. It is recommended that you allocate at least half of your day for shopping in any of the major malls. On the other side of the spectrum, you have tiangges. This is more of a bazaar experience. Here, shoppers can bargain with local vendors and even buy wholesale items at dirt cheap prices. You can find almost any item you can think of here, and again, serious shoppers should allocate a lot of time for this shopping experience because there is just so much to browse.

Dining

If you have ever tried Filipino food then you know you are in for a real treat when you visit Manila. The Filipino lifestyle includes a lot of eating – and by this I mean up to five meals a day! When looking for a great dining experience in the greater Manila area, visitors need look no further (please do though!) than the Greenbelt in Makati. Here is where visitors can find the largest variety of foods, from unique and trendy, to traditional and time tested. Another great place to look, especially for a more classy dining experience, is The Fort Strip and Serendra. This is in Global City, Taguig, and offers the newest and most exciting options in entertainment and dining.

View more of Satori World Medical’s popular destinations

References
[1] http://en.wikipedia.org/wiki/Manila
[2] http://www.manila.gov.ph/
[3] http://wikitravel.org/en/Metro_Manila