Insurance brokers see opportunity in US domestic medical travel

According to an article on Benefitspro, US brokers and their self-funded clients are getting more keen on medical travel as a benefits package option, attracted by the potential cost savings. Travel within the US for treatment is seen as having the greatest potential, particularly given the emergence of healthcare centres of excellence.

The article recognises that including medical travel in US health insurance is still uncommon and still seldom used by plan members.

It quotes Margaret Hare, vice president of strategic business services and benefit technology officer at insurance broker, Holmes Murphy, saying “We have very few employers who have chosen to implement this type of program. We try to take any other approach first, as we know that domestic and international tourism can be disruptive. But if they are ready to do innovative solutions, it’s something that we look at.” The article claims that more brokers want to know how foreign medical travel plans work and are educating themselves about the details of foreign medical travel.

The article warns that brokers who want to include medical travel in their toolkit should know they will encounter several major objections from sponsors and plan members. Studies have reported that few patients will willingly travel more than 25 or 30 miles for treatment, while sponsors may be wary of the risks of foreign travel in particular. In addition, including medical travel in a benefits package requires a willingness to innovate and take risks, something most employers are not known for.

US domestic medical travel opportunity

The article identifies US domestic medical travel as offering the most immediate opportunity, and with the emergence of centres of excellence (COEs), it says this sector is attracting the attention of more employers.

As brokers and employers become privy to, and begin to understand, the waves of medical outcomes data now available, COEs around the US are emerging. Employers can now compare outcomes by location. The article states that, with a few exceptions, plan sponsors are not requiring employees to take their business to a designated COE. But if they have crunched the numbers of potential savings, they are increasing the incentives for employees to choose to travel for certain medical care.

The article highlights a survey of major employers by the National Business Group on Health reported a 6% increase from 2018 (14%) to 2019 (20% projected) in including COE care availability in plan design. It’s a trade-off for employees: those who opt for COE medical care instead of a surgical procedure at a local facility are rewarded with lower copays and reduced premiums. As the COE concept catches on, large employers in particular are including distant facilities in their plans.

The article argues that, absent true health care reform in the US, medical travel will continue to grow in popularity among US plan sponsors and their members. Medical travel, it says, represents yet another way for creative brokers to better serve their clients, and improve the health care experience of plan members.