Self Insured Group Health Plans and Health Travel, India

Now Companies Consider Health Travel to India

It is now an accepted fact that, due to skyrocketing healthcare costs in the United States, many Americans are going abroad for surgeries and other procedures, where they are 60% to 85% cheaper. Besides, the feasibility and convenience of a medical tourism package, the quality of health care in many of these developing countries makes the idea of health travel, in India for example, both attractive and sensible. Now, for instance, not only do individuals consider the best hospitals in India for hip replacement, but also, companies sponsoring self insured group health plans do, too.

What Any Company Using a Medical-Tourism Package Should Know.

It is advisable for companies to look at the complete picture before opting for health travel to India. Employees should be fully aware of the taxes they are expected to pay, additional costs and liabilities they may incur, and the challenges they may face while utilizing a medical tourism package.  Although hospitalization and other expenses connected to the procedure are usually tax-free, other expenses such as transportation and accommodation may not be, especially if they are considered to be part of a pleasure trip and not a part of health travel to India. This is so, even in the best hospitals in India for hip replacement. Tax exemptions may be given only on the conditions that temporary housing is utilized for medical care and the treatment is provided only by a licensed American-trained physician.  Again, if the patient opts to travel elsewhere for medical care for personal reasons, the procedure and the costs incurred are not included as part of health travel to India. Deciding what constitutes personal reasons is a subjective matter. An employee must also remember that taxes will be levied on enticements that are part of these group health plans and will be paid by the members using them. All prescriptions are taxable even though they have been prescribed and bought in another country.

Other Considerations When Availing of a Medical Tourism Package

Employers must remember that an employee on a medical tourism package will be away for a longer stretch. Their employees will have fewer legal protections abroad.  Conditions of post-operative care, privacy of medical records, and employer liability issues that may backfire on a well meaning employer, must also be considered.  There are FDA regulations for procedures, like hip surgeries, that may be available abroad, - for instance, in the best hospitals in India for hip replacement - but not at home.  In order to overcome these disadvantages and to protect one’s interests, employers should consult and work with both an experienced attorney and a reliable medical tourism company when considering a medical tourism package for employees.

Source: Marcia Wagner, “Medical Tourism, What are your options?”  Employee Benefit News, October, 2006