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.