Michael Horowitz, M.D., MBA, Founder and President of Medical Insights International believes that the trend toward people in the U.S. sidestepping services available in their communities to travel to less-developed countries for medical care is critically linked to the nature of delivery of healthcare services here and in the U.S. and in developing countries. "It is a consequence of lack of affordability and availability in many foreign countries," says Horowitz. "Increasingly, insurance companies are exploring ways to take advantage of lower costs and superior availability of services offered in foreign countries."

What is the link between insurance companies and medical tourism?

What began as a phenomenon that was mostly identified with the self-pay, under- and uninsured market, medical tourism has expanded into the insurance and employee benefit market with insurance companies, benefit consultants, third-party administrators and self-insured employers developing medical tourism products. "The development within the third-party payer market has many anticipating a huge increase in the number of medical tourists as plans roll out, promising huge savings to employers and those patients who choose the medical tourism option," says Van Demark.

A major New England grocery chain has an agreement with Aetna that offers employees in need of hip and knee surgeries medical travel to Singapore. "While overseas hospitals are actively marketing their services in the U.S., we are carefully considering the associated quality, cost and follow-up care issues. We have a plan in place with Hannaford Brothers, in Maine to evaluate the benefits and costs of this type of program," says Christine R. Erb, Communications Business Partner at Aetna.

"Our efforts are to work with health care providers and plan administrators (like Aetna) so quality of care is always advancing and cost is as reasonable as it can be for our associates and Hannaford as an employer." Michael Norton, Director of Corporate Communications, Hannaford, Scarborough, Maine

Hannaford Brothers has partnered with the National University Hospital in Singapore for services and will pay airfare and lodging for the patient and a companion. "Under IRS guidelines, up to $10,000 of travel-related medical expenses are tax-free to the patient. Hannaford expects savings of around $3,000 to the company and to the employee," says Peter Hayes, Director of Associate Health & Wellness.

Are too few employees taking advantage of medical travel abroad?

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