By Jessica Yarbrough, Marketing & Communications Manager of Satori World Medical

Caught up in one of the largest economic fallouts in history, the big three U.S. automakers, General Motors (GM), Ford and Chrysler, are now faced with the quandary of how to continue health care benefits for well over one million employees and their families, including the tens of thousands of workers being forced into early retirement as a result of their massive layoffs.

Meanwhile, hundreds of thousands of GM retirees age 65 and over who were once promised medical benefits for life are now finding themselves without any health care coverage at all. On January 1, 2009, GM announced that it would cease providing health care insurance to employees and their families age 65 and over, once they become eligible for Medicare benefits.

The crushing burdens of medical costs have no doubt played a significant role in the decline of America’s top three automakers, currently placing them in an insolvent position. Case in point, GM’s retiree health care expenses alone add up to $50 billion a year, which is far more than what its government bailout can cover.

So what’s the solution, or does one even exist? We need to find a way to provide more Americans with access to quality health care that is also affordable. But how can we accomplish that when currently the U.S. health care system is the most expensive health care system in the world? One option for reducing the burden of healthcare cost the auto industry may want to consider is medical tourism, whereby American patients travel to international hospitals to receive quality and affordable medical care outside the U.S. In fact, according to Deloitte’s 2008 consumer study on medical tourism, it’s predicted that an estimated six million American patients will travel outside the U.S. for medical care by 2010.

Why? Well for starters, quality health care that rivals U.S. standards, is available in many nations around the world, including Singapore, Thailand, India, Turkey, Costa Rica, and Mexico.  A U.S. patient can travel to an international hospital in India for a hip replacement and receive the same, if not better, quality of care, for a tenth of what it would cost to undergo that same procedure in the U.S.

Secondly, companies are now offering more incentives for employees to participate in global health care programs. Satori World Medical offers an innovative global health care program that shares the financial benefits of medical travel with all participants, including both employers and their employees.

By electing to receive surgery at any of Satori’s International Centers of Excellence an individual can obtain high quality medical care with no out-of-pocket expenses because the patients’ share of deductible, co-pay and co-insurance are waived. Additionally, they have the opportunity to share in the significant savings and receive thousands of dollars funded by their employer in a tax-advantaged Health (HRA). These funds can then be used to cover future medical expenses.

Furthermore, for large employers, such as the Big three automakers, by dramatically reducing their employees’ and retirees’ health care expenses, they are able to compete better globally, and at the same time offer a more competitive benefit package to their workforce.

Solving the auto industry’s health care crisis clearly will require fundamental changes and further innovations in healthcare delivery systems. A global medical benefit option is just one cost effective solution that can lower companies healthcare expenses, provide employees with an additional choice as to where to receive their health care and put real and meaningful dollars into consumers’ pockets.

Note: If you found this blog post interesting, you might also enjoy reading the following recent news articles.

“A Risky Bankruptcy Looms for GM,” BusinessWeek – 4/8/09

“Potential PBGC Problem: $13.5 Billion GM Liability,” Pensions & Investments – 4/6/09

“Retired GM workers concerned about health, pension benefits,” Fort-Star Telegram – 4/1/09

“Autoworkers Union Reaches Deal on Health Benefits with Ford,” Washington Post – 2/23/09

“Union Talks Seen as Key as G.M. makes Case for Funds,” New York Times – 2/16/09